Question 5 Barry, an Oklahoma Crude Company engineer who did not take Engineering Economy in his undergraduate coursework, recommended that Oklahoma Crude purchase a special tool to reduce the cost of pumping oil out of the bayous of St. Martin Parish. As a result of Barry's recommendation, Oklahoma Crude purchased the tool for $30,000 on January 1, 2005. By January 1, 2006, the tool had saved a total of $5,000 and went on line ill time. After going on line full time, the tool saved Oklahoma Crude $9,000 each year for the next three years and Barry was happy. However, Barry recommended the low cost model, and it started breaking down during the early part of year ve, and ended up by saving only $4,000 during year ve. It was scrapped as being unusable at the end of year ve, and had a zero salvage value. Barry told his boss that his recommendation had been correct, as it had saved Oklahoma Crude $6,000 and that is a savings of 20%. Solution