The cost associated with maintaining rural highwaysfollows

Chapter 6, Problem 6.32

(choose chapter or problem)

The cost associated with maintaining rural highwaysfollows a predictable pattern. There are usuallyno costs for the first 3 years, but thereaftermaintenance is required for restriping, weed control,light replacement, shoulder repairs, etc. Forone section of state highway S102, these costs areprojected to be $6000 in year 3, $7000 in year 4,and amounts increasing by $1000 per year throughthe highways expected 30-year life.(a) Assuming it is replaced with a similar roadway,determine the perpetual equivalent annualcost (years 1 to ) at an interest rate of8% per year.(b) Verify your factor-based answer on a spreadsheetin the most efficient way you know.ABC Beverage, LLC purchases its 355-ml cans inlarge bulk from Wald-China Can Corporation. Thefinish on the anodized aluminum surface is producedby mechanical finishing technologies calledbrushing or bead blasting. Engineers at Wald areswitching to more efficient, faster, and cheaper machinesto supply ABC. Use the estimates andMARR = 8% per year to select between the twoalternatives.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 2Bead blasting alternative: P = $400,000; n islarge, assume permanent; no salvage; nonlaborAOC = $70,000 per year