13. (Cash- flow analysis, break- even points) The Coka company is a soft drink company. Until today, the company bought empty cans from an outside supplier that charges $0.20 per can. In addition, the transportation cost is

$1,000 per truck that transports 10,000 cans. The Coka company is considering whether to start manufacturing cans in its plant. The cost of a can machine is $1,000,000, and its life span is 12 years. The terminal value of the machine is $160,000, but the machine will be depreciated on a straightline basis to a salvage value of zero. Maintenance and repair costs will be $150,000 for every 3- year period and will be paid at the end of every 3 years. The additional space for the new operation will cost the company

$100,000 annually. The marginal cost of producing a can in the factory is $0.17.