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Setra's model 595 digitally compensated sub- mersible pressure transducer can be used for many purposes, including flood warning. A lithium battery manufacturer is located in a low-lying area that is subject to flash flooding. An engineer for the company estimates that with early warning, equipment damage could be reduced by an aver- age of $40,000. If a complete monitoring system (sensors, computers, installation, etc.) will cost $25,000, how many months from now would the first flood have to occur in order to justify the system in one flood event? The company uses an interest rate of 1% per month.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91720087

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