ABC Beverage, LLC purchases its 355-ml cans inlarge bulk
Chapter 6, Problem 6.33(choose chapter or problem)
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
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