Task 1 Determine what the minimum production area must be to justify the purchase of a mechanical grape picker. (15) Available Information: Area of grapes under cultivation Grape Yield Price of grapes Cost of manual picking Price of mechanical picker Salvage value Useful life Variable costs of mechanical picker including labour Reduction of yield and quality Opportunity cost of capital Insurance and licences as % of average investment 250 ha 2000 ha R5/kg R0,50/kg R150 000 R 50 000 60 months R6 per ha R20 per ha 15% per year 2,5% Task 1 Determine what the minimum production area must be to justify the purchase of a mechanical grape picker. (15) Available Information: Area of grapes under cultivation Grape Yield Price of grapes Cost of manual picking Price of mechanical picker Salvage value Useful life Variable costs of mechanical picker including labour Reduction of yield and quality Opportunity cost of capital Insurance and licences as % of average investment 250 ha 2000 ha R5/kg R0,50/kg R150 000 R 50 000 60 months R6 per ha R20 per ha 15% per year 2,5%