X Company currently buys 8,000 units of a part each year from a supplier for $8 00 per part, but it is considering making the part instead It paid a consulting firm $16,000 to do the make buy analysis The consulting firm determined that X Company would have to buy equipment costing $150,000 to make the part The equipment would last for six years, at which time it would have zero disposal value The consulting company also estimated that it would cost X Company $36,310 a year to produce the 8,000 units What is the approximate rate of return if X Company makes the part instead of buying it from the supplier Note Submit 1 as 01, etc Submit Answer Tries 0 1

Question

X Company currently buys 8,000 units of a part each year from a supplier for $8 00 per part, but it is considering making the part instead  It paid a consulting firm $16,000 to do the make buy analysis  The consulting firm determined that X Company would have to buy equipment costing $150,000 to make the part  The equipment would last for six years, at which time it would have zero disposal value  The consulting company also estimated that it would cost X Company $36,310 a year to produce the 8,000 units  What is the approximate rate of return if X Company makes the part instead of buying it from the supplier   Note  Submit 1  as  01, etc   Submit Answer Tries 0 1

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X Company currently buys 8,000 units of a part each year from a supplier for $8.00 per part, but it is considering making the part

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