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Job Management Partner 1 Certified Engineer (V12)

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Two years ago, the purchasing manager at a company spent $25,000 on a new machine that would improve production efficiency at the company. The manufacturers of the machine release an updated model that costs $35,000 and that promises to further improve production efficiency. Under what conditions should the purchasing manager upgrade to the new model?
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C. If the savings from the additional efficiency improvements are large enough to offset the $60,000 spent on machines
D. If the savings from the additional efficiency improvements are large enough to offset the $10,000 difference in price between the machines
Answer: A

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