Ahonda motor company retools an old civic assembly plant in detroit to produce a gas-efficient economy model, dream civic. honda and its suppliers are looking for additional sources for light, durable transmissions. automatic transformation component manufacturers use highly finished dies for precision forming of internal gears and other moving parts. two us-based vendors make the needed dies. using the estimates below, select the more economical vendor bid using irr method. marr is 12%.
- a в
initial cost, $ -8,000 -13,000
annual cost, $ -3,500 -1,600
salvage value, $ 0 2,000
life, years 10 5