To compare the value of amounts received at different times in the future, dollar amounts must be restated to their future value by adding the compound interest to date. may be restated to their present value through discounting or restated to their future value by compounding. must be restated to their present value by removing the interest from the amount to be received in the future. must be converted to a single sum.

Afirm plans to begin production of a new small appliance. the manager must decide whether to purchase the motors for the appliance from a vendor at $10 each or to produce them in-house. either of two processes could be used for in-house production; process a would have an annual fixed cost of $200,000 and a variable cost of $7 per unit, and process b would have an annual fixed cost of $175,000 and a variable cost of $8 per unit. determine the range of annual volume for which each of the alternatives would be best. (round your first answer to the nearest whole number. include the indifference value itself in this answer.)