Jameson inc. plans on purchasing a new metal melter for its line of steel. There are two choices of supplier: Metal Inc and Steek Ubc. Their proposals are as follows: Metal Inc Expected life 8 years First cost $250,000 Maintenance $15,000/year + $0.07/unit t Labour $1.30/unit Other costs $7,300/year+$1.05/unit Salvage Value $6,500. Steel Inc Expected Value 12 years, FIrst cost 375000, Maintenance 22,000/ year + 0.02/unit, labour 0.75/unit, other costs 17,500/ year + 0.7/unit and Salvage value is 23000.

Management thinks they would be able to sell 10,000 candles per year based on current demand. If the demand increases, sales may be as high as 50,000 candles a year. Candleworks inc. uses an MARR of 12% for equipment projects. a) Who is the preferred supplier if sales are 20,000 units per year? b) Who is the preferred supplier if sales are 230,000 units per year?

(Need very urgently)