Cfd engineering inc is considering two options for


CFD Engineering, Inc. is considering two options for obtaining parts that will be needed for the next ten years. The first option is to order the parts from a supplier for $90 per unit. The second option is to produce the parts in-house by purchasing equipment that costs $100,000 and will have no salvage value at the end of 10 years. Annual operating costs for the equipment will be $7,000 per year and materials will cost $25 per unit produced. MARR is 8% per year. How many units (X) would have to be produced per year to prefer the in-house option?

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Financial Accounting: Cfd engineering inc is considering two options for
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