Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 22 Nov 2017 My Price 5.00

Wald-China Can Corporation

5.19    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 alternative: P = $-400,000;

n = 10 years; S = $50,000; nonlabor AOC = $-50,000 in year 1, decreasing by $5000 annually starting in year 2.

Bead blasting alternative: P = $-300,000; n is large, assume permanent; no salvage; nonlabor AOC = $-50,000 per year.

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Nov 2017 08:11 PM My Price 5.00

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