Question: Please answer using formulas in Excel Currently, Bryer's Ice Cream uses Finamac continuous ice cream machines for their process. However, last week, Emery Thompson, a

 Please answer using formulas in Excel Currently, Bryer's Ice Cream uses

Please answer using formulas in Excel

Currently, Bryer's Ice Cream uses Finamac continuous ice cream machines for their process. However, last week, Emery Thompson, a competitor of Finamac came into the facility to propose a new system that would improve the operation. The current Finamac system has the following characteristics: Production Rate on Line: Production Labor on line Production Labor rate 110 Gallons per minute $30 per hour, 8 hour/day, 5days a week for 50 weeks per year With the Emery Thompson system, there are many improvements: Production Rate on Line Production Labor on line Production Labor Rate: 150 Gallons per Minute 2 people $30 per hour, 8 hour/day, 5days a week for 50 weeks per year The new Emery Thompson system would cost $9,000,000 up front and would have required maintenance of $1,200,000 per year going up at 6% per year. Would you recommend this project at the company MARR of 6%? Assume that the project life is 10 years. Also, assume that the company can sell as many as product as it can produce for $0.5 per gallon. (Hint: Show your work on this Excel Sheet. Find Only one NPV for the new system and use the difference between the two alternatives. (Hint: Do not calculate 2 NPVs - Check principle 2 of fundemental princples of engineering economics in chapter 1) Do you recommend it

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