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  3. s pt x company currently makes 6,500 units of a co

s pt X Company currently makes 6,500 units of a component part each year, but...

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Accounting

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s pt X Company currently makes 6,500 units of a component part each year, but is considering buying it from a supplier for 7.80 cach. The current annual cost of making the part is $55,300. The supplier wants X Company to sign a contract for the next six years. If X Company buys the part, it will be able to sell the equipment that it currently uses to make the part for $10,000 but the equipment will have no salvage value at the end of six years. Assuming a discount rate of 4%, what is the net present value of buying the part instead of making it? 8. A

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