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Question 6 (Solve the problems) 5 Points You are planning to sell a new product. You have two options: Make Option. Include buying a machine
Question 6 (Solve the problems) 5 Points You are planning to sell a new product. You have two options: Make Option. Include buying a machine that cost is $50,000, and has a salvage value of $10,000 after eight years, and annual VC is -5X Buy Option Include annual VC is -10% a) Perform a make/buy analysis where the common variable is X (the number of units produced each year). Use a MARR of 8% per year b) If the number of units sold is 10,000, which option is better (Make or Buy)
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