by using excel

6.57 Empex Corporation currently produces both videocassette cases (bodies) and metal-particle magnetic tape for commercial use. An increased demand for metalparticle videotapes is projected, and Empex is deciding between increasing the internal production of both empty cassette cases and magnetic tape or purchasing Problems 291 empty cassette cases from an outside vendor. If Empex purchases the cases from a vendor, the company must also buy specialized equipment to load the magnetic tape into the empty cases, since its current loading machine is not compatible with the cassette cases produced by the vendor under consideration. The projected production rate of cassettes is 79,815 units per week for 48 weeks of operation per year. The planning horizon is seven years. After considering the effects of income taxes, the accounting department has itemized the costs associated with each option as follows: "Make" Option: (Note the conventional assumption that cash flows occur in discrete lumps at the ends of years, as shown in Figure 6.5.) Assuming that Empex's MARR is 14%, calculate the unit cost under each option. 6.57 Empex Corporation currently produces both videocassette cases (bodies) and metal-particle magnetic tape for commercial use. An increased demand for metalparticle videotapes is projected, and Empex is deciding between increasing the internal production of both empty cassette cases and magnetic tape or purchasing Problems 291 empty cassette cases from an outside vendor. If Empex purchases the cases from a vendor, the company must also buy specialized equipment to load the magnetic tape into the empty cases, since its current loading machine is not compatible with the cassette cases produced by the vendor under consideration. The projected production rate of cassettes is 79,815 units per week for 48 weeks of operation per year. The planning horizon is seven years. After considering the effects of income taxes, the accounting department has itemized the costs associated with each option as follows: "Make" Option: (Note the conventional assumption that cash flows occur in discrete lumps at the ends of years, as shown in Figure 6.5.) Assuming that Empex's MARR is 14%, calculate the unit cost under each option