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1. Should Adrenaline continue to buy the turbocharger from Turbo Inc.? 2. Adrenaline is considering renting an additional machine ($50,000 annual rent) that can install
1. Should Adrenaline continue to buy the turbocharger from Turbo Inc.?
2. Adrenaline is considering renting an additional machine ($50,000 annual rent) that can install the turbocharged engine. The marketing department believes it can sell an additional 100 units, but the market price for the Hyper model will drop to $14,000 per unit. Should Adrenaline rent the additional machine? (Assume that all other costs per unit are the same. Also, answer this question without changing your answer to question 1).
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