8. Syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the seal. Rapir Chemical developed an integrated polymer dynamic seal that provides a higher sealing force on the sealing lip, resulting in extended seal life. One of Rapir's customers expects to reduce downtime by 30% as a result of the new seal design. If lost production would have cost the company Php6M per year for the next 4 years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 12% per year? A Php18.22M B Php28.68M C Php5.47M D Php8.60M

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter10: Short-term Decision Making
Section: Chapter Questions
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8. Syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the
seal. Rapir Chemical developed an integrated polymer dynamic seal that provides a higher
sealing force on the sealing lip, resulting in extended seal life. One of Rapir's customers
expects to reduce downtime by 30% as a result of the new seal design. If lost production
would have cost the company Php6M per year for the next 4 years, how much could the
company afford to spend now on the new seals, if it uses an interest rate of 12% per year?
A
Php18.22M
B
Php28.68M
C Php5.47M
D
Php8.60M
Transcribed Image Text:8. Syringe pumps often fail because reagents adhere to the ceramic piston and deteriorate the seal. Rapir Chemical developed an integrated polymer dynamic seal that provides a higher sealing force on the sealing lip, resulting in extended seal life. One of Rapir's customers expects to reduce downtime by 30% as a result of the new seal design. If lost production would have cost the company Php6M per year for the next 4 years, how much could the company afford to spend now on the new seals, if it uses an interest rate of 12% per year? A Php18.22M B Php28.68M C Php5.47M D Php8.60M
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