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8pt X Company currently buys 10,000 units of a component part each year from a supplier for $7.20 each but is considering making them instead.

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8pt X Company currently buys 10,000 units of a component part each year from a supplier for $7.20 each but is considering making them instead. Variable costs of making would be $4.80 per unit; additional annual fixed costs would be $7,000. Equipment would have to be purchased for $31,000 and will last for 6 years, at which time it will have a disposal value of $7,000. Assuming a disount rate of 4%, what is the net present value of making the part instead of continuing to buy it? 9. AO se3 644 BO s92,284 s133,812 DO s94,027 EOS281,339 FO s407941

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