lectur22-page1 - figure out whether it is more economical...

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PRODUCTION COSTS THE PURCHASE OR LEASE DECISION OBJECTIVE: To determine whether we should purchase a piece of machinery or equipment, or whether we should rent or lease the services of such machinery or equipment. EXAMPLE: We have a field of corn to harvest soon, and we are trying to
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Unformatted text preview: figure out whether it is more economical to buy and use our own combine OR to use a custom combining service. Cost of combine $60,000 Expected useful life 12 years Salvage value $20,000 Custom rate $50.00 /ac....
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This note was uploaded on 12/29/2011 for the course ECO 210 taught by Professor Malls during the Fall '10 term at SUNY Stony Brook.

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