Health Supplement Inc. Nutritional supplements provide nutrients, which may not be ingested in sufficient quantities. Dietary supplements may be vitamins, minerals, amino acids, fatty acids or other substances, and are present in the form of pills, tablets, capsules and liquids. It is true that today our diet is much richer than those in the past. On the other hand, the abundance of processed food and ignorance of the basic principles of nutrition have led much of the population to an unbalanced diet, thus creating the phenomenon of very rich food in calories and fat but poor in proteins, vitamins and minerals. So sometimes doctors have to recommend the consumption of food supplements in order to meet these human needs. The nutritional supplements help in improving performance, physical appearance and people sometimes resort to taking dangerous drugs to meet the increased needs of the human body or deficiencies in nutrients caused by and which cannot be met by their normal diet. Consumption of food supplements should be done in moderation because their excess consumption can cause various side effects in the human body. The manufacturing of these supplements is being carried using machines which use quite a number of skilled staff. The management of Health Supplement Inc. wants to reduce its labor cost by installing a new set of machines which will help it to do just that. There are two types of machines currently available in the market – machine X and machine Machine X would cost $18,000 whereas machine Y would cost $15,000. Both the machines can reduce annual labor cost by $3,000. Question : Analyze the use of the “Payback Method” with uneven cash flow project?
Health Supplement Inc.
Nutritional supplements provide nutrients, which may not be ingested in sufficient quantities.
Dietary supplements may be vitamins, minerals, amino acids, fatty acids or other substances,
and are present in the form of pills, tablets, capsules and liquids.
It is true that today our diet is much richer than those in the past. On the other hand, the
abundance of processed food and ignorance of the basic principles of nutrition have led much
of the population to an unbalanced diet, thus creating the phenomenon of very rich food in
calories and fat but poor in proteins, vitamins and minerals. So sometimes doctors have to
recommend the consumption of food supplements in order to meet these human needs. The
nutritional supplements help in improving performance, physical appearance and people
sometimes resort to taking dangerous drugs to meet the increased needs of the human body
or deficiencies in nutrients caused by and which cannot be met by their normal diet.
Consumption of food supplements should be done in moderation because their excess
consumption can cause various side effects in the human body.
The manufacturing of these supplements is being carried using machines which use quite a
number of skilled staff. The management of Health Supplement Inc. wants to reduce its labor
cost by installing a new set of machines which will help it to do just that.
There are two types of machines currently available in the market – machine X and machine
- Machine X would cost $18,000 whereas machine Y would cost $15,000. Both the
machines can reduce annual labor cost by $3,000.
Question : Analyze the use of the “Payback Method” with uneven cash flow project?
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