Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. There is a supplier in China that can supply the Polymer bush or you can purchase an injection-moulding machine to produce the bushes in-house.

image text in transcribed

2. There is a supplier in China that can supply the Polymer bush or you can purchase an injection-moulding machine to produce the bushes in-house. The details are outline below: - The Moulding Machine cost, already imported, installed and operational, is R7mil. This machine allows you to produce these bushes at a nett cost of R7.20 per bush. - The supplier in China supplies the bushes to your facility at a nett cost of R9.45 per bush, however, you do run the economic risk of currency fluctuation of 5% (a probability of 0.2 of this occurring) If the supply contract that you have signed with the automotive manufacturer entails supplying 4750 units per month, for the five-year term of the contract, would you purchase that injection moulding machine

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Quantum Economics And Finance

Authors: David Orrell

3rd Edition

1916081630, 978-1916081635

More Books

Students also viewed these Finance questions

Question

List the advantages and disadvantages of the pay programs. page 505

Answered: 1 week ago