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1.- (25-min, 25-P) An-existing fruit juice manufacturing facility produce $150,000 tons. of fruit juice in a year. The extraction-unit has to be renewed. There are
1.- (25-min, 25-P) An-existing fruit juice manufacturing facility produce $150,000 tons. of fruit juice in a year. The extraction-unit has to be renewed. There are two alternatives. One of the alternative-is-to-use a conventional extractor with an installed cost-of-$100,000. This unit has a service-life-of-10-years-with-a-scrap value-of-$1000.--This unit is very similar to the ones that has been used in the factory in terms of its extraction efficiency. The annual operating cost.(excluding: depreciation)-for-this-unit-is $40,000. The second alternative is to-use-a-novel-extractor-in-which pulsed electric-field. Technology-is-integrated.-The-installed-cost-of-this-unit-is-$200,000-with-a-service-life of 10-years.--The-scrap-value-of-the-unit-is-$5,000.-The annual-operating cost: (excluding depreciation)-of-this-unit-is-$75,000.--This-novel-unit-provide-10%-more- efficiency-in-the extraction-yield. 1 If-the-selling price-of-the-fruit-juice is $5 per kg and the income tax rate-is-35%, which extractor should be selected.--The minimum acceptable-rate-of return after tax-is 20% for the company. 1 Note: Extraction yield-is-the amount-of-juice obtained from a given amount of raw fruit
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