Question 2:'CrispyWater' a leading Warter purifier brand is planning to release a commercial filter model: Purity 2.0 with 2 major benefits: (i) The filter needs to be changed every 10,000 liters, approximately once a year, and (ii)The rate of damage to holding tank the is reduced

The current filter Purity needs to change every 5,000 liters or approximately after 6 months. Purity costs $200. The labor cost to change this is $45. The labor cost required to change the new filter is the same.

The new filter also reduces the change for damage in filter membrane from 0.7% to 0.5% a year (note this is annual and not per filter replacement). When the tank is damaged it needs to be replaced with a new tank that costs $2,500.

1. What is the EVC based maximum price for the new filter Purity2.0 for a business? State any assumption you make.
2. You are asked to conduct a survey to see access the demand curve for Purity 2.0. Design a 3-question survey (if you ask more than 3 question only the first 3 questions will be graded) you would ask commercial procurement managers.