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Often times at Black & Decker we would source parts for a new product that we would normally produce at a lower cost in house

Often times at Black & Decker we would source parts for a new product that we would normally produce at a lower cost "in house" in order to reduce our initial investment.Do you see a "real option" in this instance?Is there a cost associated with the "real option" and how would you go about evaluating whether or not to proceed bringing the sourced parts "in house"?And why wouldn't one simply elect to produce the parts "in house" to begin with?

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