A bicycle manufacturer currently produces 275,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $1.90 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.40 per chain. The necessary machinery would cost $240,000 and would be obsolete after 10 years. This investment could be depreciated to zero for tax purposes using a 10 -year straight-line depreciation schedule. The plant manager estimates that the operation would require $56,000 of inventory and other working capital upfront (year 0 ), but argues that this sum can be ignored since it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after 10 years are $18,000. If the company pays tax at a rate of 25% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier? Project the annual free cash flows (FCF) of buying the chains. The annual free cash flows for years 1 to 10 of buying the chains is ? (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the NPV of buying the chains from the FCF. The NPV of buying the chains from the FCF is $ (Round to the nearest dollar. Enter a negative NPV as a negative number.) Compute the initial FCF of producing the chains. The initial FCF of producing the chains is $ (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the FCF in years 1 through 9 of producing the chains. The FCF in years 1 through 9 of producing the chains is 9 (Round to the nearest dollar. Enter a free cash outflow as a negative number.)