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Explain clearly The it Company plans to produce the product by the suitable way of three proposed methods. Method A involves the purchase of a

Explain clearly

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The it Company plans to produce the product by the suitable way of three proposed methods. Method A involves the purchase of a machine for $ sous . it will have a ve-year life. with a zero- salvage value at that time. Using the method, A involves additional costs of S 0.13 per unit of product produced per year. Method B involves the purchase of a machine for S 3th . it will also have a ve-year life, with a SZDDD salvage value at that time. Using Method B involves additional costs of $0.115 per unit of product produced per veer. Method B involves the purchase of a machine for 35350. It will have a 5 11B!) salvage value when disposed of in ve veers. Additional costs of $0.25 per unit of product per year arise when Method B is used. An 3% interest rate is used by the I Company in evaluating investment alternatives. For what range of annual production volume values is each method preferred

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