You Are Considering Buying a Salt Water Chlorinator for Your

question 67

Short Answer

You are considering buying a salt water chlorinator for your swimming pool. The equipment costs $1300, and you estimate that you will save $250 per year with the saltwater system. Will the chlorinator pay for itself in 6 years (i.e. will the present value of the cost of the chemicals equal or exceed the cost of the chlorinator)? Assume an annual interest rate of 7%, compounded continuously. Answer "yes" or "no".

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Definitions:

Competitive Strategy

Refers to a long-term plan formulated by a company to gain a competitive advantage over its rivals in the industry.

Organization Structure

The arrangement of departments, roles, and responsibilities within a company, defining how activities are directed to achieve goals.

Determinants of Performance

Factors or elements that significantly influence the output, efficiency, or effectiveness of individuals, teams, or organizations.

Essential Operations

Core activities necessary for an organization or system to function effectively.