A bicycle manufacturer currenty produces 294,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $2.10 a chain. The plant manager believes that in 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 $285,000 and would be obsolete atter ten years. This investment could be depreciated to zero for tax purposes using a ten-year straight-Ine depreciation schedule. The plant manager estimates that the operation would require $36,000 of inventery and other working capital upfront lyear 0 . but argues that this sum can be ignored since it is recoverable at the end of the ton years. Expected proceeds from scrapping the machinery after ten years are $21,375, If the company pays tax at a rate of 20% and the coportunity cost of capial 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 fows (FCF) of buying the chains. The annual free cash flows for years 1 to 10 of buying the chains is \& (Round to the nearest dolar, Entor a free cash outlow as a negative number.) Compute the NPV of buying the chains from the FCF. The NPV of buying the chains from the FCF is is (Round to the nearest dollar. Enter a negative NPV as a negative numbec.) Compute the initial FCF of producing the chains. The incial FCF of producing the chains is : (Round to the nearest dolar, Enter a free cash outfow as a negative mumber.) Compute the FCF in years 1 through 9 of producing the chains. The FCF in years 1 through 9 of producing the chains is S (Round to the nearest dollar. Enter a free cash outfow as a negative number.)