In St Luke’s hospital, there are four lifts for visitors. While the average capacity of the four lifts is sufficient to transport the visitors during the day, visitors have to wait about 3 minutes on average to get in the lift. Installing a fifth lift would reduce the waiting time to 1 minute 30 seconds. Knowing that the yearly depreciation and operational costs of a fifth lift is a30,000 and knowing that there are about 70,000 visitors a year, would you recommend that the hospital install a fifth lift?
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