Johnson Products now buys a certain part for its chain saws. The managers are considering the production of the part in-house. They can install a production system that would have a life of five years with no salvage value. They believe that over die next five years the real price of purchased parts will remain fixed. They expect die real price of labour and other inputs to production to rise over die next five years. Further information about the situation is in the table below. Assume inflation is 2 percent per year in die first year of operation. What will be the current dollar cost of labour for in-house production in die second year? Assume inflation is 2 percent per year in the first two years of operation. What will be die current dollar cost of other operating inputs for in-house production third year? Assume that inflation averages 2 percent per year over the five-year life of the project What is the present worth of costs for purchase and for in-house production