Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 29

Mid-Valley Industrial Extension Service, a state-sponsored agency, provides water quality sampling services to all business and industrial firms in a 10-county region. Just last month, the service purchased all necessary lab equipment for full in-house testing and analysis. Now an outsourcing agency has offered to take over this function on a per sample basis. Data and quotes for the two options have been collected. The MARR for government projects is 5% per year, and a study period of 8 years is chosen. Assume the Extension Service can reduce its annual salaries from $175,000 to $100,000 per year and the per sample cost from $25 to $20. What will this do to the breakeven point ( Hint: Again, look carefully at your graph from the previous problem before answering.) What is the new annual breakeven test quantity