A Swim Club Is Designing a New Pool to Replace

question 109

Essay

A swim club is designing a new pool to replace its old pool. The new pool would need to last for 10 years since the club is planning on relocating after 10 years. A concrete shell would cost $85,000 and last for all 10 years. Another option is to install a vinyl liner that would cost only $70,000 to install. However, the vinyl is not guaranteed to last for all 10 years, and it has a 40% chance of breaking down. Repair of the vinyl would cost $40,000 and would extend the life of the vinyl liner to the 10-year mark. If both options are acceptable to the swim club, which one minimizes cost?

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Definitions:

Clerical Tasks

Routine office administrative duties such as filing, typing, and scheduling appointments.

Receptionist's Supervisor

An individual responsible for overseeing the work of receptionists, ensuring that front desk operations are efficient, and guests are satisfactorily assisted.

Performance Management System

A strategic and integrated approach to increasing the effectiveness of organizations by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors.

Corrective Action

Steps taken to identify, eliminate, and prevent the recurrence of errors or problems in processes, products, or systems.