Question: Scenario A (Basic Slap Chips Fryer) Machine A (Basic Slap Chips Fryer): This machine requires the cooking oil to be changed every 22 hours. Cost

Scenario A (Basic Slap Chips Fryer) Machine A

Scenario A (Basic Slap Chips Fryer) Machine A (Basic Slap Chips Fryer): This machine requires the cooking oil to be changed every 22 hours. Cost of the machine: R 4 XYZ Capacity: Requires 2x litres of cooking during operation. Scenario B (Refined Slap Chips Fryer) Machine B (Refined Slap Chips Fryer): This machine makes use of an oil filtration process and therefore requires the cooking oil to be changed every 62 hours. Cost of the machine: R 12 XYZ Capacity: Requires 2x litres of cooking during operation. The price of oil is R 15 per litre and interest rate is 10%. Study the two proposed scenarios (A & B) and apply systems thinking to answer the following questions. 4.1 Based on your understanding of the problem, What is the total Rand value during 240 hours? [4] 4.2 2.2 If the machine works for 240 hours, what is the Net Present Value for "Machine A" and what is the Net Present Value for "Machine B"?. 4.3 Based on the understanding of the scenarios, How many hours of cooking are required before the two options are even? 4.4. Call your friend in the class and compare your answers? Briefly explain why your answers are different. 4.5 Based on your own idea and knowledge, will the staff need to be trained to use the machines at Tsalanang. TOTAL [20] Scenario A (Basic Slap Chips Fryer) Machine A (Basic Slap Chips Fryer): This machine requires the cooking oil to be changed every 22 hours. Cost of the machine: R 4 XYZ Capacity: Requires 2x litres of cooking during operation. Scenario B (Refined Slap Chips Fryer) Machine B (Refined Slap Chips Fryer): This machine makes use of an oil filtration process and therefore requires the cooking oil to be changed every 62 hours. Cost of the machine: R 12 XYZ Capacity: Requires 2x litres of cooking during operation. The price of oil is R 15 per litre and interest rate is 10%. Study the two proposed scenarios (A & B) and apply systems thinking to answer the following questions. 4.1 Based on your understanding of the problem, What is the total Rand value during 240 hours? [4] 4.2 2.2 If the machine works for 240 hours, what is the Net Present Value for "Machine A" and what is the Net Present Value for "Machine B"?. 4.3 Based on the understanding of the scenarios, How many hours of cooking are required before the two options are even? 4.4. Call your friend in the class and compare your answers? Briefly explain why your answers are different. 4.5 Based on your own idea and knowledge, will the staff need to be trained to use the machines at Tsalanang. TOTAL [20]

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!