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12) Your Canadian factory produces bicycles. Handle bars are currently manufactured at your plant. The president was made an offer by a business in South

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12) Your Canadian factory produces bicycles. Handle bars are currently manufactured at your plant. The president was made an offer by a business in South Korea to make the handle bars for you. You are asked by your president to determine if the offer to buy is cheaper than to make. You have the following information What do you recommend? . Une Time Value of Money Volume -104,000 handle bar/year Quote from Korea is CAD $3.990/1000 handlebars FOB your plant Cost to Buy: show all digits Company interest rate is 4%, planning horizon is 4 years from your calculator Labour $1.25/ handle bar 12a Material - $2.20/handle bar Plating = $0.20 / handle bar Other costs - 50.36/handle bar Note: curent Korean Won exchange rate: 1000 KRW - 50.88 US Cost to Buy: show all digits Shipping cost quoted by Maerak is $300/ton from your calculator 12b +

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