My company is currently buying an item for 54 We can make the same item internally for a labor cost of 17 a material cost of 11

Question

My company is currently buying an item for 54 We can make the same item internally for a labor cost of 17 a material cost of 11 and a tooling cost of 3 per part However I need to purchase a machine to do the job The machine will cost 450 000 and will require annual maintenance of 35 000 The machine will have a salvage value of 135 000 in seven years At 6 interest what is the break even point O a 1809 Ob 2207 OC 4327 O d 5904

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