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A meat-packing plant manager is trying to decide between two different methods for cooling cooked hams. The spray method involves spraying water over the hams
A meat-packing plant manager is trying to decide between two different methods for cooling cooked hams. The spray method involves spraying water over the hams until the ham temperature is reduced to 30 degrees Celsius. With this method approximately 80 liters of water are required for each ham. Alternatively, an immersion method can be used in which only 16 liters of water are required per ham. However, this method will require an initial extra investment of exist 2,000.00 and extra overhaul expenses of exist 100.00 per year, with the equipment expected to last 10 years. The company cooks 10 million hams per year and pays exist 0.12 per1000 liters for water. The company must also pay exist 0.04 per 1000 liters for wastewater discharged. If the company's minimum attractive rate of return is 15 % per year, which method of cooling should be used
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