Question

2.A pump has failed in a facility that will be replaced in three years. A brass pump costing $6,000 will last three years. A used stainless-steel pump that should last three years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The pump is currently valued at $7,000. The maintenance supervisor says that it will cost an extra $500.00 to reconfigure the pump for the new use, and she has noted that it could be sold used (as is) for $4,000. a.How much cheaper or more expensive would it be to use the stainless-steel pump rather than a new brass pump

Answer 1

Answer:

-$1,500 more expensive

Explanation:

Calculation for How much cheaper or more expensive would it be to use the stainless-steel pump rather than a new brass pump

Using this formula

Cheaper or more expensive=Brass pump value-( Current pump value+Pump reconfigure extra amount spent)

Let plug in the formula

Cheaper or more expensive =$6,000-($7,000+$500)

Cheaper or more expensive =$6,000-$7,500

Cheaper or more expensive =-$1,500 more expensive

Therefore based on the information given the stainless steel pump will be $ 1500 more expensive than the brass pump.