ABC Beverage purchases cans in 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. Use a MARR of 10% per year to select between the two alternatives below: Brush Bead Blasting $475,000 First cost AOC Salvage value Life $475,000 $60,000 in Year 1, decreasing by $2,000 annually starting in Year 2 $50,000 6 years $58,000 $0 Very long Brushing with an AW = -$105,500 Brushing with an AW = -$167,031 Bead Blasting with an AW = -$105,500 Bead Blasting with an AW = -$167,031

ABC Beverage purchases cans in 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. Use a MARR of 10% per year to select between the two alternatives below: Brush Bead Blasting $475,000 First cost AOC Salvage value Life $475,000 $60,000 in Year 1, decreasing by $2,000 annually starting in Year 2 $50,000 6 years $58,000 $0 Very long Brushing with an AW = -$105,500 Brushing with an AW = -$167,031 Bead Blasting with an AW = -$105,500 Bead Blasting with an AW = -$167,031

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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