Bronze Company currently manufactures the bike seats that are installed on its bikes. The cost to produce 300 bike seats last year were as follows: Cost per bike seat Direct materials $6 $2 Direct labor Variable manufacturing overhead Fixed manufacturing overhead $4 $10 A supplier has offered to provide Bronze Company with all of its bike seat needs for $18 per bike seat. Fixed manufacturing overhead of $6 per bike would be unavoidable even if the company decided to accept the supplier's offer. Question Answer 1. Based on this information, what is the financial advantage or disadvantage of Bronze Company buying the bike seats from the supplier instead of making internally? 2. If the buy option is selected, the company will be able to use the freed up space to generate an additional $500 of income each year to produce and sell more of another product. Based on this information, what is the financial advantage or disadvantage of Bronze Company buying the bike seats from the supplier instead of making internally? An investment project requires an initial investment of $220,000. The project is expected to generate net cash inflows of $46,000 per year for the next five years. These cash inflows occur evenly throughout the year. Assuming a 12% discount rate, the project's payback period is? (Ignore income taxes) OA. 4.78 years 0.21 years 3.61 years OD 4.21 years