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A company is considering two methods for obtaining a certain part. Method A will involve purchasing a machine for $60,000 with a life of 5 years, a $1,500 salvage value, and a fixed annual operating cost of $12,000. Additionally, each part produced by the method will cost $12.

Method B will involve purchasing the part from a subcontractor for $20 per part. At an interest rate of 10% per year, determine the number of parts per year required for the two methods to break even. (Enter your answer as a number without the dollar $ sign.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92411825

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