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In a make or buy case we have the following: - Cashflow for 5 years ( both fixed and variable costs direct labor, direct materia,
In a make or buy case we have the following:
- Cashflow for 5 years ( both fixed and variable costs "direct labor, direct materia, MOH" are available in the statement )
- NPV was already calculated
- $POHR was also calculated
- Income is not available ( it is not possible to assume it )
What other financial calculations can be taken into consideration to support the make or buy decision ?
1) Please specify the methods
2) Do you think $POHR calculation really affect the make or buy decision ?
Thanks in advance !
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