The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms$.$ Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:

Currently, the farm is paying an average of $$230,000$ per year to transient workers to pick the cherries.

The cherry picker would cost $$620,000.$ It would be depreciated using the straight$-$line method and it would have no salvage value at the end of its $8-$year useful life.

Annual out$-$of$-$pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $$91,000$; insurance, $$5,000$; fuel, $$13,000$; and a maintenance contract, $$16,000.$The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms$.$ Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:

Currently, the farm is paying an average of $$230,000$ per year to transient workers to pick the cherries.

The cherry picker would cost $$620,000.$ It would be depreciated using the straight$-$line method and it would have no salvage value at the end of its $8-$year useful life.

Annual out$-$of$-$pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $$91,000$; insurance, $$5,000$; fuel, $$13,000$; and a maintenance contract, $$16,000.$The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop. Janessa Wright, the farm manager, just received information on a cherry picking machine that is being purchased by many fruit farms. The machine is a motorized device that shakes the cherry tree, causing the cherries to fall onto plastic tarps that funnel the cherries into bins. Ms$.$ Wright has gathered the following information to decide whether a cherry picker would be a profitable investment for the Elberta Fruit Farm:

Currently, the farm is paying an average of $$230,000$ per year to transient workers to pick the cherries.

The cherry picker would cost $$620,000.$ It would be depreciated using the straight$-$line method and it would have no salvage value at the end of its $8-$year useful life.

Annual out$-$of$-$pocket costs associated with the cherry picker would be: cost of an operator and an assistant, $$91,000$; insurance, $$5,000$; fuel, $$13,000$; and a maintenance contract, $$16,000.$