Question: manager believes that it would be cheaper to make these chuins tather than buy them. Direct in house production costs are estimated to be ont

manager believes that it would be cheaper to make these chuins tather than buy them. Direct in house production costs are estimated to be ont $1.50 per chain. The necessary machinery would proceeds from scrapping the machinery after ten years are $16,600. if the compacy pays tax at a me of 20% and the opportunty cost of capital is 15%, what is the net present value of the dochion to produce she chains in house inatead of purchaing them trom the sopplen? The annual free cash flows for years 1 is 19 of buying she chins is 1

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