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Tech Solutions is considering two options for expanding its production capacity: Option A: Purchase new machinery for $150,000 with annual operating costs of $20,000. Option
Tech Solutions is considering two options for expanding its production capacity:
- Option A: Purchase new machinery for $150,000 with annual operating costs of $20,000.
- Option B: Lease machinery for $40,000 per year. If the company expects to produce 10,000 units annually with a selling price of $50 per unit and variable costs of $30 per unit, which option is more cost-effective over a five-year period?
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