A bicycle manufacturer currently produces 297,000 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 $1.60 per chain. The necessary machinery would cost $210,000 and would be obsolete after ten(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 additional working capital of $28,000 but argues that this sum can be ignored because it is recoverable at the end of the 10 years. Expected proceeds from scrapping the machinery after ten years are $15,750.If the company pays tax at a rate of 35% and the 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 suppliers?Project the annual free cas flows (FCF) of buying the chains. (a) 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 neares 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 year 1 through 9 of producing the chains is $------.(Round to the nearest dollar.Enter a free cash outflow as a negative number.)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 outflow as a negative number.) Compute the NPV of producing the chains from the FCF.The NPV of producing the chains from the FCF is $-------.(Round to the nearest dollar.Enter a negative NPV as a negative number.) Compute the difference between the net present values found above.The net present value of producing the chains in-house instead of purchasing them from the supplier is $----------.(Round to the nearest dollar.)