Question: ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical
ABC Beverage, LLC, purchases its 355-ml cans in large bulk from Wald-China Can Corporation. The finish on the anodized aluminum surface is produced by mechanical finishing technologies called brushing or bead blasting. Engineers at Wald are switching to more efficient, faster, and cheaper machines to supply ABC. Use the estimates and MARR = 15% per year to select between the two alternatives. Brush Alternative Bead Blasting Alternative P $-350,000 $-350,000 n 7 years large Salvage Value $50,000 no value AOC Nonlabor $-70,000 in year 1, decreasing by $3500 annually starting in year 2 $-84,000 per year The is selected by the company.
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