Question: DVH Technologies currently purchases various components for the instruments it manufactures under a fixed price contract of $190,000 per year from a local supplier. The

DVH Technologies currently purchases various

DVH Technologies currently purchases various components for the instruments it manufactures under a fixed price contract of $190,000 per year from a local supplier. The company considers whether it is better to manufacture the components itself by purchasing equipment that will cost up to $240,000 with an estimated salvage value of $30,000 after five years. It is difficult to estimate the cost of operation, but company engineers made optimistic, most likely, and pessimistic estimates of $60,000,$85,000, and $120,000 per year, respectively. Determine if the company should purchase the equipment under any of the operating scenarios. The TMAR is 20% per year

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