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Invest in the energy-efficient pump

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Question

A premium efficiency pump in an industrial facility will cost $40,000 installed and will consume $9,500 per year of energy and require $1,500 per year worth of maintenance for a lifetime of 12 years. A standard-efficiency pump will cost $27,000 and will consume $13,000 per year of energy and will require $800 per year worth of maintenance for the same lifetime. If your company uses a MARR of 10%, would you invest in the energy-efficient pump? Justify your answer.

Reference no: EM133436392

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