will 28 A company is considering two methods for obtaining a certain part. Method involve purchasing a machine for $50,000 with a life of 5 years, a $2,000 salvage value and a fixed annual operating cost of $10,000. Additionally, each part produced by the method will cost $10. Method B will involve purchasing the part from a subcontractor for $25 per part. At an interest rate of 10% per year, the number of parts per year required for the two methods to break even is a. 1,333 b. 1,524 c. 1,850 d. 2,011

will 28 A company is considering two methods for obtaining a certain part. Method involve purchasing a machine for $50,000 with a life of 5 years, a $2,000 salvage value and a fixed annual operating cost of $10,000. Additionally, each part produced by the method will cost $10. Method B will involve purchasing the part from a subcontractor for $25 per part. At an interest rate of 10% per year, the number of parts per year required for the two methods to break even is a. 1,333 b. 1,524 c. 1,850 d. 2,011

Fundamentals Of Financial Management, Concise Edition (mindtap Course List)

10th Edition

ISBN:9781337902571

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter12: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 10P: Dauten is offered a replacement machine which has a cost of 8,000, an estimated useful life of 6...

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