Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ceul Print X Company currently buys 8,000 units of a part each year from a supplier for $7.80 per part, but it is considering making
ceul Print X Company currently buys 8,000 units of a part each year from a supplier for $7.80 per part, but it is considering making the part instead. In order to make the part, X Company will have to buy equipment that will cost $150,000. The equipment will last for 6 years, at which time it will have zero disposal value. X Company estimates that it will cost $33,785 a year to make all 8,000 units. What is the approximate rate of return if X Company makes the part instead of buying it from the supplier? [Note: 0.03 means 3%, etc.) A: 0.03 Submit Answer B: 0.04 C: 0.05 OD: 0.06 E: 0.07 F: 0.08 Answer Submitted: Your final submission will be graded after the due date. Tries 3/99 Previous Tries
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started