Please do this question using Excel, and show the function that you use 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 Finamac system has the following characteristics:
Production Rate on Line:	120 Gallons per minute
Production Labor on line	5 people
Production Labor rate:	$25 per hour, 8 hour/day, 5days aweek for 50 weeks per year
Production Losses for Change Over:	400 gallons per change over
Production Change overs per year:	100 Changes
Cost of 1 Gallon Production Loss:	$1.27
With the Emery Thompson system, there are many improvements:
Production Rate on Line:	150 Gallons per Minute
Production Labor on line:	4 people
Production Labor Rate:	$25 per hour, 8 hour/day, 5days aweek for 50 weeks per year
Production Losses for Change Over:	100 Gallons
Production Change Overs per year	100
Cost of 1 Gallon Production Loss:	$1.27
The new Emery Thompson system would cost $12,620,000 up front and would have required maintenance of $1,000,000 per year going up at 6% per year. Would you recommend this project at the company MARR of 12%?
Do you ecommend it?	Why?