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Home Q & A Board Other Fields Homework Help Business Economics
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Lukashylo Lukashylo
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5 years ago
A soft drink company has to decide whether to make bottles in house or to buy. If they choose
to buy, the can buy at market price $0.10 per bottle. They need 200,000 bottles each year. If
they choose make-in-house option, they need to buy a machine that costs $100,000 with service
life of 20 years and a salvage value of $5,000. The maintenance cost of the machine is $4,000
per year. All other additional cost of the make-in-house option is $20,000 per year. What should
the company do? Use i=5%.

a) Choose “buy” option.
b) Choose “make” option.
c) The company is indifferent between two options
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bolbolbolbol
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5 years ago
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rhockeygirl
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5 years ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
prime7105
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Yesterday
Thanks for your help!!
sleinhi
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2 hours ago
Just got PERFECT on my quiz
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