The Mechanical Components Division manager asks you to recommend a make/buy decision on a major automotive subassembly that is currently purchased externally for a total of $3.9 million this year. This cost is expected to continue rising at a rate of $300,000 per year. Your manager asks that both direct and indirect costs be included when in-house manufacturing (make alternative) is evaluated. New equipment will cost $3 million, have a salvage of $0.5 million and a life of 6 years. Estimates of materials, labor costs, and other direct costs are $2.2 million, per year. Typical indirect rates, bases, and expected usage are shown. Determine AW for make and buy at MARR =12% per year over a 6 -year study period. a. AW( make) =$3,763,075,AW( buy) =$4,551,600 b. AW(make) =$3,763,075,AW (buy) =$4,551,614 c. AW(make) =$4,663,064,AW( buy) =$4,551,600 d. AW(make) =$4,663,064,AW( buy) =$4,551,614