to reduce their volume and allow the average weight per container to increase to $11$ tons. The shredder has no salvage value at the end of its $6-$year useful life. The operating and maintenance cost $($not including the operator, a janitorial associate$)$ is $$3000$ per year. The pallets average $13$ pounds each.

A pallet recycler has offered to purchase pallets, which are of certain sizes and in good condition. The pallets that are in these sizes and in acceptable condition amount to half the scrapped pallets. The pallet recycler is offering to pay $$1\mathrm{.}00$ per pallet. To sort the acceptable sizes from the scrap pallets will require three hours of labor per day. This job can also be done by a janitorial associate.

Purchasing has identified a company that will pick up the damaged and unusable pallets and process them into wood chips, which this company then sells. The cost of this service is $$1\mathrm{.}25$ per pallet.

The plant works $5$ days a week, $50$ weeks a year. The minimum attractive rate of return is $15\%.$

What do you recommend the plant do$?$