Our current equipment is fully deprieciated and can produce

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Reference no: EM1391744

Assume that you are offered a new piece of equipment for $10,000 units per year with a margin of $6.00 per unit. Demand for the product being produced has been 2,000 units per year. Your current equipment is fully deprieciated and can produce 2,000 units per year with a margin of $4.00 per unit.Should you perchase the new equipment? Under what conditions?

Reference no: EM1391744

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