Alpha Electronics can purchase a needed service for \($90\) per unit. The same service can be provided by equipment that costs \($100\),000 and that will have a salvage value of 0 at the end of 10 years. Annual operating costs for the equipment will be \($7\),000 per year plus \($25\) per unit produced. MARR is 12 percent/year.

a. Based on a present worth analysis, should the equipment be purchased if the expected production is 200 units/ year?

b. Based on a present worth analysis, should the equipment be purchased if the expected demand is 500 units/ year?

c. Determine the breakeven value for annual production that will return MARR on the investment in the new equipment.