Question: ! Required information Problem 0 8 . 0 4 3 - Purchase decision DVH Technologies purchases several parts for the instruments it makes via a

! Required information Problem 08.043- Purchase decision DVH Technologies purchases several parts for the instruments it makes via a fixed-price contract of \$170,000 per year from a local supplier. The company is considering making the parts in-house through the purchase of equipment that will have a first cost of \(\$ 240,000\) 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 \(\$ 71,000,\$ 85,000\), and \(\$ 120,000\), respectively. The MARR is \(20\%\) per year. Problem 08.043.a - Make or purchase decision Use spreadsheet functions to determine if the company should purchase the equipment under any of the AOC scenarios. The spreadsheet function to determine the AW for the optimistic scenario is ], the AW value for the optimistic scenario is \$, and the company should (Click to select)\(\vee \) the parts for the optimistic scenario. The spreadsheet function to determine the AW for the most likely scenario is (Click to select), the AW value for the most likely scenario is \$, and the company should (Click to select) the parts for the most likely scenario. The spreadsheet function to determine the AW for the pessimistic scenario is (Click to selec |, the AW value for the pessimistic scenario is \(\$-\), and the company should (Click to select)\(\vee \) the parts for the pessimistic scenario.
! Required information Problem 0 8 . 0 4 3 -

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