Explain when a company will perform capital rationing. Consider the information below and determine whether your company should produce a particular component in-house or whether the company should consider outsourcing the component. Cost of making the component in-house (R'000) Year Year Year Year 2 0 1 3 -1000 0 0 Plant and equipment Manufacturing cost Opportunity cost 0 0 -150 -200 Year 0 0 Cost of outsourcing (R'000) -250 -100 -200 -200 Year 4 0 -350 -200 Year 5 +100 0 0 Year 1 Year 2 Year 3 Year 4 Year 5 Purchase -800 -900 -1000 -1200 0 cost (Note: Ignore tax, assume a discount rate of 10%, you may use discount factors rounded to three decimals; show all your calculations)