Delivered overnight priority annually

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Reference no: EM132260783

The us post office is considering outsourcing their overnight priority mail service out of their miami office region however, the number of letters that deliver each year varies. the outsource service would charge cost $2.5 per letter. if the post office is to continue to deliver the service , it must upgrade its current equipment at a cost of $50000 and it would cost them $1 per letter for the us post office to provide the service . the useful life of the equipment is 5 years and the outsource agreement would be for 5 years. the salvage value of the equipment would be $10000 at the end of 5 years. how many letters must be delivered overnight priority annually to make it immaterial as to whether they should outsource the service or continuing doing it themselves? MARR.

Reference no: EM132260783

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