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Posted: April 20th, 2022
X Company currently buys 6,500
Question Assignment description
X Company currently buys 6,500 models of a element half every year from a provider for $eight.80 every, however it’s contemplating making the half as a substitute. In an effort to make the half, X Company must purchase gear that may value $150,000. The gear will final for six years, at which period it would have zero disposal worth. X Company estimates that it’s going to value $25,730 a 12 months to make the 6,500 models. What’s the approximate charge of return if X Company makes the half as a substitute of shopping for it from the provider?
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