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Based from the calculations made, the rate of return of the machine in the business,
32.53%, is greater than 10% which implies that it is a good investment. But when it comes
to comparing alternatives, the Grande (Henan) machine should be selected. The
computation showed that the rate of return of the Grande is higher and more economical
compared to the ginger washer machine. From the economic criterion, an alternative
should be chosen with minimal annual cost, which the Grande showing only ₱82,044.08
compared to ₱180,568.71 of the ginger washer company. By present worth cost method
and by equivalent uniform annual cost method, Grande machine has lesser values,
₱530,790.18 and ₱82,044.08 respectively. While the ginger washer machine has a value of
₱1,217,468.68 for the PWC and ₱180,568.71 for EUAC. Therefore, in terms of alternatives,
Grande should be chosen.
RECOMMENDATION
We recommend to improve the ginger washer machine and the Grande (Henan) since it
is concluded that ginger washer machine is a good investment and Grande is more economical
and justifiable in terms of comparing alternatives. As an innovation to the machine, it is
recommended to add dryers directly to the machine using low-cost materials without
comprising the quality of the machine. As for the ginger washer machine, it is recommended to
advertise the equipment to gain more buyer and encourage people to adapt the machine.
Conduct seminars and endorsement with freebies as a giveaway. Also, discount is tendered as
well as continuous washing line for ginger to be readily pack. Washing system completely
manufactured in AISI 304 stainless steel before the gingers are to be wash, soaking area or
station must be establish to soften the dirt resume to the outlet of machine which is equipped
with blower to make the wet gingers dry.