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ABC Drinks purchases its 355 ml cans in large bulk from Wald- China Can Corporation. The finish on the anodized aluminum surface is produced by

ABC Drinks 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 technology 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 = 8% per year to select between two alternatives. Brush alternatives: P = $-400,000; n= 10 years; S= $50,000; non labor AOC = $-50,000 in year 1, decreasing by $5000 annually starting in year 2 Blead blasting alternative: P = $-300,000; n is large, assume permanent; no salvage; non labor AOC = $-50,000 per year

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