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4. To manufacture a new product, a metal-processing company needs a special component. This can be produced in the factory or bought in. To start
4. To manufacture a new product, a metal-processing company needs a special component. This can be produced in the factory or bought in. To start production of the component, an investment is required for which the projects A and B are available. The option to buy in from another company represents alternative C and the buying in price of the component is $125 per unit. The annual interest rate is 8% for all project. The tasks are: (a) Using the cost comparison method to determine the cost of the three projects tor a yearly production volume of 8,000 units. (b) With this specific component, the income share would increase $160 per unit use. Compare the options with their profits and returns
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