How much could the company afford to spend


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 Trident's customers expects to reduce downtime by 14% as a result of the new seal design. If lost production would have cost the company $360000 per year for the next 13 years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 7% per year?

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Accounting Basics: How much could the company afford to spend
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