What is the cost per high-quality part produced

Reference no: EM131923196

Question: You purchase a machine for $30,000 now, with a salvage value of $12,000 in 15 years. The machine will have O&M costs and cost of raw goods totaling $20,000 per year. The machine will produce 2,500 high-quality parts per year. If i = 8% annual rate compounded annually, what is the cost per high-quality part produced?

Reference no: EM131923196

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