What is the approximate rate of return

Assignment Help Operation Management

Reference no: EM13964008

X Company currently buys 6,500 units of a component part each year from a supplier for $7.70 each, but it is considering making the part instead. In order to make the part, X Company will have to buy equipment that will cost $150,000. The equipment will last for six years, at which time it will have zero disposal value. X Company estimates that it will cost $20,500 a year to make the 6,500 units. What is the approximate rate of return if X Company makes the part instead of buying it from the supplier?

Reference no: EM13964008

Questions Cloud

Hotel market segment in your community : Identify a restaurant or hotel market segment in your community that you feel would be a good market segment to target. Explain the marketing mix you would put together to go after this market segment.

Explain some of the segments in its over-all market : Choose a hospitality business, for example, a hotel or restaurant. Explain some of the segments in its over-all market (in this case, the hotel market or restaurant market), one of these markets that it targeted, and how it differentiated itself from..

What is attorney and client privilege : Excluding attorney/client privilege, what are an attorney's basic obligations to a client? What is attorney/client privilege? Why do Freedman and Fried think it is morally permissible to respect attorney client privilege?

Parts of conceiving and constructing your research proposal : In retrospect, what did you find to be the most difficult parts of conceiving and constructing your research proposal? What would you have done differently?

What is the approximate rate of return : X Company currently buys 6,500 units of a component part each year from a supplier for $7.70 each, but it is considering making the part instead. In order to make the part, X Company will have to buy equipment that will cost $150,000. What is the app..

Considered for promotion of product : Two advertising media are being considered for promotion of a product. Radio ads cost $400 each, while newspaper ads cost $600 each. The total budget is $7200 per week. The total number of ads should be at least 15, with at least 2 of each type, and ..

Why is the organization of data in research important : Why is the organization of data in research important? How can you ensure that you are organizing it effectively?

Regarding protection or conservation of natural environment : What is Verizon doing to be more responsible regarding the protection or conservation of the natural environment? How well do they communicate this information? What are some ways they could improve their efforts toward environmental sustainability?

Makes the part instead of buying it from the supplier : X Company currently buys 6,500 units of a component part each year from a supplier for $7.70 each, but it is considering making the part instead. In order to make the part, X Company will have to buy equipment that will cost $150,000. The equipment w..

User Account

All Pages