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?

---

Definitions:

Pacinian Corpuscles

Sensory receptors in the skin sensitive to pressure and vibration, helping organisms perceive touch and pressure changes.

Ruffini Endings

Sensory receptors in the skin that detect stretch, pressure, and heat, contributing to the sense of touch.

Root Hair Plexus

A network of root hair cells that increases a plant's surface area for water and nutrient absorption from the soil.

Free Nerve Endings

Sensory receptor endings that are found in nearly all body tissues and are capable of detecting pain, temperature, and touch stimuli.