Higher maintenance costs, The two-pump solution has

Higher maintenance costs

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Reference no: EM131807863

You are reevaluating the pump choice that was made last year by your boss. The expected cost savings have not occurred because the pump is too small. Choice A, at $90,000, is to replace the pump with one that is the right size and sell the old one. Choice B, at $100,000, is to buy a small pump to use in tandem with the existing pump. The two-pump solution has slightly higher maintenance costs, but it is more flexible and reliable. What criteria should you use? Which choice would you recommend, and why?

Reference no: EM131807863

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