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Mathematics, 21.05.2020 21:58 bookerman123

A firm is considering the "make vs. buy" question for a subcomponent. If the part is made in-house, the production data would be: first cost = $350,000; annual costs for operation = $45,000; salvage value = $15,000; project life = 5 years; interest = 10%; and material cost per unit = $8.50. If annual production is 10,000 units, the maximum amount that the firm should be willing to pay to an outside vendor for the subcomponent is nearest?

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