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10 018756 Mid-Valley Industrial Extenslon Service, a state-sponsored agency, provides water quality sampling services...

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Accounting

10
018756
Mid-Valley Industrial Extenslon Service, a state-sponsored agency, provides water quality sampling services to all business and Industrial Nirms in a 10-county region. Last month, the service purchased all necessary lab equipment for full in-house testing and analysis. Now, an outsourcing company has offered to take over this function on a per-sample basis. Data and quotes for the two projects is 5% per year and a study period of 8 years is chosen.
Holp
s.
Server
Holp
8018756
In-house: Equipment and supplies initially cos $125,000 for a life of 8 years, an AOC of $15,000, and annual salaries of $175,000. Sample costs average $25. There is no significant salvage value for the equipment and supplies currently owned.
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