I need help with the first part of this assignment:

During your Supply Chain career, you may find yourself engaged in supporting the decision making process as your company evaluates whether to make or buy products, assemblies, subassemblies or parts. You work for the Titan Braking Systems company (TBS). Management believes that it may be able to lower its costs by outsourcing some of its braking products. You?ve been tasked to quote suppliers for making three products. You?ve received proposals, but recognize the need to assess whether accepting any of these proposals is in TBS? best interests. It?s not immediately clear if it?s a better financial deal to continue making these products in-house or outsource them. You?ve compiled all available financial data and are ready to begin preparing an assessment. You have the following goals for your assessment:

1. You need to determine two benchmarks, against which you?d assess supplier quotes:
   1. The net present value (NPV) at which TBS is indifferent on whether to outsource the three products or continue making them in-house.
      • Finding this value requires you to come up with a unit price based on the Table 1 Unit Production Cost data and then utilize the (10) year sales forecast to come up with annual aggregate production costs. You would then calculate the net present value of these annual costs. Use a 10% discount rate.
        • Tip 1: Remember that NPV tables are accessible through a link in our Module 3 folder.
        • Tip 2: Coming up with an annual production cost for each product will require you to allocate overhead to production costs. Overhead can allocated based on labor costs; the sum of unit labor and material; or per unit. You may choose your allocation base.
   2. TheNPVatwhichTBSwillrealizea10%reductionincosts.Thisrequiresyoutoreducetheprojectedunitpriceby10%ineachyearandthenfollowthesamestepstodevelopanNPV,asoutlinedabove.

Table 1

Sales Forecast and Unit Production Costs

	YEAR
	1	2	3	4	5	6	7	8	9	10
Overhead	$1.2 M	$1.2M	$1.2M	$1.2M	$1.2M	$1.2M	$1.2M	$1.2M	$1.2M	$1.2M
Product A
Forecast	5,000	6,000	6,500	5,500	4,400	3,900	3,500	2,500	2,000	1,000
Labor/Unit	$800	$800	$800	$800	$800	$900	$900	$900	$900	$900
Matl./Unit	$500	$500	$500	$500	$500	$550	$550	$550	$550	$550
Product B
Forecast	3,500	3,500	3,500	3,500	3,500	3,500	3,500	3,500	3,500	3,500
Labor/Unit	$900	$900	$900	$900	$900	$900	$900	$900	$900	$900
Matl,/Unit	$650	$650	$650	$650	$650	$650	$650	$650	$650	$650
Product C
Forecast	2,500	2,500	3,000	3,200	3,500	3,700	3,900	3,800	3,800	3,800
Labor/Unit	$500	$500	$500	$500	$500	$500	$500	$500	$500	$500
Matl,/Unit	$250	$250	$250	$250	$250	$250	$250	$250	$250	$250

I figured out the Unit Price (see attachment) but not sure if the annual aggregate production cost calculations are correct:

Product A Unit Cost Labor + Matl/Forecast 1 0.26 2 0.21 3 0.2 4 0.23 5 0.3 6 0.37 7 0.41 8 0.58 9 0.73 10 1.45 Product B Unit Cost Labor + Matl/Forecast 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 0.44 Product C Unit Cost Labor + Matl/Forecast 0.3 0.3 0.25 0.23 0.21 0.2 0.19 0.2 0.2 0.19 240 342.86 480 200 342.86 480 184.61 342.86 400 218.18 342.86 375 272.72 342.86 342.86 307.69 342.86 324.32 342.86 342.86 307.69 480 342.86 315.79 600 342.86 315.79 1200 342.86 315.79 Annual Product Cost Product A Product B Product C Product A Purchase Price Salvage Value Useful LIfe Age Depreciable Cost Annual Depreciable Cost Accumulated Depreciation @ 10 years Book Value Product B $2,500,000 $200,000 14 years 2 years Product C $5,000,000 $750,000 10 years New 2,300,000 $164,286 $1,642,860 $857,140 General $4,000,000 $250,000 15 years 4 years 4,250,000 $425,000 $4,250,000 $750,000 $5,000,000 $1,200,000 17 years 5 years 3,750,000 $250,000 $2,500,000 $1,500,000 $3,800,000 $223,530 $2,235,300 $2,764,700