Several high-value parts for NASA's reusable space exploration vehicle can be either anodized or powder-coated. Some of the costs for each process are shown below:
|
|
Anodize
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Powder Coat
|
|
First cost, $
|
?
|
65,000
|
|
Annual cost, $ per year
|
21,000
|
?
|
|
Resale value, $
|
?
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6,000
|
|
Life, years
|
3
|
3
|
The incremental AW cash flowsequation associated with (powder coat - anodize) is 0 _ -14,000( A_P , i ,3) _ 5000 _ 2000( A_F , i ,3)
What is (a) the first cost for anodizing, (b) the annual cost for powder coating, and (c) the resale (salvage) value of the anodized parts?