29. Company X has been contracting its overhauling work to Company Y for $40,000 per machine per year. Company X estimates that by building a $500,000 maintenance facility with a life of 15 years and a salvage value of $100,000 at the end of its life, they could handle their own overhauling at a cost of only $30,000 per machine per year. What is the minimum annual number of machines that Company X must operate to make it economically feasible to build its own facility? (Assume an interest rate of 10% ) A. 1 <= N <= 5 B. 6 <= N <= 7 C. 8 <= N <= 9 D. 10 <= N <= 11

29. Company X has been contracting its overhauling work to Company Y for $40,000 per machine per year. Company X estimates that by building a $500,000 maintenance facility with a life of 15 years and a salvage value of $100,000 at the end of its life, they could handle their own overhauling at a cost of only $30,000 per machine per year. What is the minimum annual number of machines that Company X must operate to make it economically feasible to build its own facility? (Assume an interest rate of 10% ) A. 1 <= N <= 5 B. 6 <= N <= 7 C. 8 <= N <= 9 D. 10 <= N <= 11

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter7: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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