Question

ABC Beverage, LLC, 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 technologies 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 = 8.9% per year to find the annual worth of the selected between the two alternatives.

	Brush Alternative	Bead Blasting Alternative
P	$-550,000	$-550,000
n	10 years	large
Salvage Value	$275,000	no value
AOC Nonlabor	$-55,000 in year 1, increasing by 8.9% annually starting in year 2	$-55,000 per year

Answer 1