A bicycle manufacturer currently produces $326,000$ units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $$$$2\mathrm{.}00$ a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct$$ in$-$house production costs are estimated to be only $$$$1\mathrm{.}40$ per chain. The necessary machinery would cost $$$$210,000$ and would be obsolete after $10$ years. This investment could be depreciated to zero for tax purposes using a $10-$year $$straight$-$line depreciation schedule. The plant manager estimates that the operation would require $$$$29,000$ of inventory and other working capital upfront$($year $0),$ but argues that this sum can be ignored since it is recoverable at the end of the $1010$ years. Expected proceeds from scrapping the machinery after $10$ years are $$$$15,750.$ If the company pays tax at a rate of $35\%$ and the opportunity cost of capital is $14\%,$ what is the net present value of the decision to produce the chains$$ in$-$house instead of purchasing them from the$$ supplier? Question content area bottom Part $1$First$,$ we project the annual free cash flows of buying the chains and then compute the$$ project's NPV$.$ The annual free cash flows for years $1$ to $10$ of buying the chains is $$$ and NPV is$?$

$$ The annual free cashflows for yeasr $1$ to $10$ of buyinh chains is $$\_\_?$

$$ The NPV of buying the chains is

$$ Next we projet the annual free cash flows of producing the chains and then compute the projects NPV

$$ The inital FCF of producing the chains is $$\_?$

$$ The FCF in years $1$ through $9$ of producing the chains is $$\_?$

$$ The FCF in year $10$ of producing the chains is $$\_?$

$$ The NPV of producing the chains is $\_?$

$$ Then, we compute the difference between the net proesent values found above

$$ The net present vlaue of producing the chains in house instead of purchasing them from the suppliers is $$\_?$