Problem 4: ABC Beverage, LLC purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the

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Problem 4 Abc Beverage Llc Purchases Its 355 Ml Cans In Large Bulk From Wald China Can Corporation The Finish On The 1 (96.26 KiB) Viewed 48 times

Problem 4: ABC Beverage, LLC purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is pro- duced by mechanical finishing technologies called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper ma- chines to supply ABC. Use the estimates and MARR = 8% per year to select between the two alternatives. Brush alternative: P = $-400,000; n = 10 years, S = $50,000; nonlabor AOC = $-60,000 in year 1, decreasing by $5000 annually starting in year 2 Bead blasting alternative: P = $-400,000; n is large, assume permanent; no salvage; nonlabor AOC = $-70,000 per year