X Company currently buys 8,000 units of a part each year from a supplier for...
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X Company currently buys 8,000 units of a part each year from a supplier for $8.00 per part, but it is considering making the part instead. It paid a consulting firm $16,000 to do the make/buy analysis. The consulting firm determined that X Company would have to buy equipment costing $150,000 to make the part. The equipment would last for six years, at which time it would have zero disposal value. The consulting company also estimated that it would cost X Company $36,310 a year to produce the 8,000 units. What is the approximate rate of return if X Company makes the part instead of buying it from the supplier? [Note: Submit 1% as .01, etc.] Submit Answer Tries 0/1
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