By installing a new injection molding machine into its assembly line, plastic molding inc. can decrease its production cost by an estimated $35,000 the first year of installment, with an additional decrease of $4,000 each year throughout the life of the equipment. it is estimated the new equipment will have a 10 years useful life and a salvage equal to 10% of its initial cost. use a nominal interest rate of 15% to calculate how much plastic molding inc. can afford to pay for the new machine

World systems manufactures an optical switch that it uses in its final product. world systems incurred the following manufacturing costs when it produced 74 comma 000 units last​ year: ​(click the icon to view the manufacturing​ costs.) another company has offered to sell world systems the switch for $ 13.50 per unit. the world systems prepared an outsourcing decision analysis to show the cost per unit of making the switches versus the cost per unit of buying​ (outsourcing) the switches. ​(click the icon to view the outsourcing decision​ analysis.) world systems needs 86 comma 000 optical switches next year​ (assume same relevant​ range). by outsourcing​ them, world systems can use its idle facilities to manufacture another product that will contribute $ 140 comma 000 to operating​ income, but none of the fixed costs will be avoidable. should world systems make or buy the​ switches? show your analysis.