0 units a year and expects output levols to remah steady in the future. It buys chains from an outside supplier at a price of $2.00 a chain The plant beleves that it would be cheaper to make these chains rather than buy them Direct in-house pr be to be only 3$1.50 per chain The machinery would cost $250 000 and woulk after ten years This investment could be using a ten-year straight-line depreciation schedule The plant manager working capital upfront (year 0), but argues that this sum can be ignored sinceis recoverable at tho end of the ten years Expected proceeds from scrapping the machinery after ten years are $20.000 fthe company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what iste net present value of the dedi toproduce the cham nhouse instead of purchasing the from the suppler? The annual tee cash tows for years 1 to 10 of beying the chains Round so the nearest dolax Enter s free cash outfow as a negatve numb) Compute the NPV of buying the chains from the FC The NPV of buying the chains from the FCF io (Round to the nearest dollar Enter a negative NPV as a negative numbe) Compute the initial FCF of producing the chains The initial FCF of producing the chains is ] (Round to the nearest dolar Enter a tee cash cultow as a negative number ) Compute the FCF in years 1 through 9 of producing the chains Compute the FCF in year 10 of producing the chains The FCF in year 10 of producing the chains is $ (Round to the nearest dollar Enter a free cash outlow as a negathve number.) Compute the NPV of producing the chains from the FCF The NPV of producing the chains from the FCF is l (Round to the nearest dollar. Enter a nagative NPV as a negative number.) The net present value of producing the chains in-house instead of purchasing them trom the suppler is Round to the nearest dolar)