Telaxy Engineering () Teloxy Engineering has received a onatime contract to design and build 10 000 units of a new product . During the proposal process, management felt that the new product could be designed and manufactured at a low cost. Some members felt that it would be more economical to purchase the product for R200 each in the marketplace, with an extra R20 per unit handling of the 10 000 units. The Management team set up a meeting with the manufacturing team to see if they can manufacture the component at a cheaper price than buying it from the outside. The manufacturing team informs them that it can produce a maximum of 10,000 units. Just enough to fulfil the contract . The setup cost wil be R100 000 and the raw material cost is R120 per component. Since Teloxy has never menufactured this product before, manufacturing expects the following defects: delectve 0 10 30 Probability of occurrence (2) 10 All defective units must be removed and repaired at a cost of R60 per unit. Adapted from: Kezner, H. R. (2017). Project Management Case Studies. New Jersey, John Wiley & Sons, Ine Question 1 1.1: If there is a 20% probability of defective product occurrence dumg production detemine fitis economealy beter to make or buy the unit? "Show all your calculations. 1.2. Teloxy Engineering wants to detemine if it should invest in setting up a manutactunng plant wom R12 000 000 or Invest in projedt Theta worth R12 000 000 by applying the payback analysis. The table to show the nits Investment cost of the two projeols and their expected revenues. Calculate the payback period of the investments Determine the outcome il Telowy management requires a 5 year or less recovery pened for the ins nestant 20 MAS