Syringe pumps often fail because reagents adhere to the ceramic piston and deter

Question

Syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the seal. Trident Chemical developed an integrated polymer dynamic seal that provides a higher sealing force on the sealing lip, resulting in extended seal life. One of Tridents customers expects to reduce down time by 30% as a result of the new seal design. If lost production would have cost the company $110,000 per year for the next 4 years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 12% per year?

Explanation / Answer

Hi, I have done the calculations with the use of excel: Savings per year would be 360000 Present Value = PV(7%,13,-360000) = 3008754.27 is the amount of money the company can afford to spend.

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