Business, 05.03.2021 17:40 Destinysills9325

A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6,000 installed will last 3 years. However, a used stainless steel pump that should last should last 3 more years has been sitting in the maintenance shop for a year. The pump cost $13,000 new. The accountant say the pump is worth $7000 now. 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 $4000. Required:
a. What is the book cost of the stainless steel pump?
b. What is the opportunity cost of the stainless steel pump?
c. How much cheaper or more expensive would t be to use the stainless steel pump rather than a new pump?

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A pump has failed in a facility that will be completely replaced in 3 years. A brass pump costing $6...

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