Present Value of $1.00 Present Value of an Annuity of $1.00 Period 1 2 0 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 .943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.434 0.404 Period 3% 4% 5% 6% 7% 8% 9% 10% 11% 12% 1 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 2 1.913 | 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.713 1.690 3 2.829 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 4 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 5 4.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 6 5.417 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 7 6 .230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 8 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 7 8 X Company currently makes a part and is considering buying it from a company that has offered to supply it for $19.03 per unit. This year, per-unit production costs to produce 18,000 units were: Direct materials Direct labor Overhead Total $8.00 6.70 5.80 $20.50 $50,400 of the total overhead costs were variable. $29,700 of the fixed overhead costs are avoidable if X Company buys the part. If the company buys the part, the resources that are used to make it cannot be used for anything else. Production next year is expected to be 17,000 units. If X Company buys the part instead of making it, it will save D: $3,690 E: $4,612 F: $5,766 A: $1,889 Submit Answer B: $2,362C: $2,952 Tries 0/99