Determining the stainless-steel pump

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Reference no: EM131806792

The brass pump of Problem 1.9 would cost $5000 installed. Instead, George could use a stainless-steel pump that has been sitting in the maintenance shop for a year. The pump should last 3 more years. The pump cost $15,000, but it was used for 2 years before being put on the shelf. The accountants say the pump is worth $6000. The maintenance supervisor says that it will cost an extra $500 to reconfigure the pump for the new use and that he could sell it used (as is) for $3000. How much would George save or spend by using the stainless-steel pump?

Reference no: EM131806792

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