Business
Business, 24.05.2021 14:00, busra09

Locke Inc has a machine that installs tires. The machine is now in need of repair. The machine originally cost $10,000 and the repair will cost $1,000, but the machine will then last two years. The labor cost of operating the machine is $0.50 per tire. Instead of repairing the old machine, Locke could buy a new machine at a cost of $5,000 that would also last 2 years; the labor cost would then be reduced to $0.25 per tire. Required:
Should Williams repair or replace the machine if it is installing 10,000 tires in the next two years?

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Locke Inc has a machine that installs tires. The machine is now in need of repair. The machine origi...

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