A Manager Is Considering Two Technological Lines to Produce Candies

question 41

Essay

A manager is considering two technological lines to produce candies. The first one requires $1 million in initial investment and produces 150 kilograms (kg)of candies per day. The second one requires $1.3 million of initial investment and produces 200 kg of candies per day. Assuming the same service life of six years for both lines, a 5% annual interest rate and the price of candies of $4/kg, which line should the manager acquire?

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Definitions:

Abraham Maslow

A pioneering psychologist best known for creating Maslow's hierarchy of needs, a theory in human psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Fulfil Potential

The process of realizing or achieving one's maximum capabilities or possibilities in any given area or field.

Drive to Grow

An intrinsic motivation or internal force that propels individuals towards personal development and fulfillment.

Humanistic Perspective

A psychological approach that emphasizes the study of the whole person and their potential for personal growth.