Question
[30/09, 9:20 am] : KPJ Corp is considering buying a new French fries cooker for its line of fried chicken products. There are two choices
[30/09, 9:20 am] : KPJ Corp is considering buying a new French fries cooker for its line of fried chicken products. There are two choices of supplier, Mari Wealth and Basic Wealth. Their proposals are as follows: [30/09, 9:20 am] : Management thinks the company will sell about 40,000 units per year if there is stability in consumer demands. If the customer demands increases, sales may be as high as 350,000 units a year. KPJ Corp uses a MARR of 14 percent for equipment projects.
a) Who is the preferred supplier if sales are 40,000 units per year? Use an annual worth comparison. b) Who is the preferred supplier if sales are 350,000 units per year? Use an annual worth comparison.
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