Required information DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of $162,000 per year from a local supplier. The company is considering making the...


Required information<br>DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of $162,000 per year<br>from a local supplier. The company is considering making the parts in-house through the purchase of equipment that wll<br>have a first cost of $232,0000 with an estimated salvage value of $30,000 after 5 years. The AOC is difficult to estimate,<br>but company engineers have made optimistic, most likely, and pessimistic estimates of $67000, $85.000, and $120,000,<br>respectively. The MARR Is 20% per year.<br>Use factors to determine if the company should purchase the equipment under any of the AOC scenarios.<br>The AW value for the optimistic scenario is $-<br>and the company should make O the parts for the optimistic scenario<br>The AW value for the most likely scenario is $-<br>and the company should makeO the parts for the most likely scenario<br>The AW value for the pessimistic scenario is $-<br>and the company should purchase<br>the parts for the pessimistic scenario<br>

Extracted text: Required information DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of $162,000 per year from a local supplier. The company is considering making the parts in-house through the purchase of equipment that wll have a first cost of $232,0000 with an estimated salvage value of $30,000 after 5 years. The AOC is difficult to estimate, but company engineers have made optimistic, most likely, and pessimistic estimates of $67000, $85.000, and $120,000, respectively. The MARR Is 20% per year. Use factors to determine if the company should purchase the equipment under any of the AOC scenarios. The AW value for the optimistic scenario is $- and the company should make O the parts for the optimistic scenario The AW value for the most likely scenario is $- and the company should makeO the parts for the most likely scenario The AW value for the pessimistic scenario is $- and the company should purchase the parts for the pessimistic scenario

Jun 09, 2022
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