X Company currently buys 7,000 units of a part each year from a supplier for $8.20 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 $28,785 a year to make all 7,000 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.) D: 0.06 E: 0.07 E: 0.08 A: 0.03 B: 0.04 C: 0.05 Submit AnswerTries 0/99