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Please help solve this by showing me all the steps A bicycle manufacturer currentlyr produces 242,000 units a year and expects output levels to remain

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A bicycle manufacturer currentlyr produces 242,000 units a year and expects output levels to remain steady in the future. It buys chains from an outside supplier at a price of $1.90 a chain. The plant manager believes that it would be cheaper to make these chains rather than buy them. Direct in-house production costs are estimated to be only $1.50 per chain. The necessaryr machinery would cost $254,000 and would be obsolete alter ten years. This investment could be depreciated to zero for tax purposes using a tenyearstraightIine depreciation schedule. The plant manager estimates that the operation would require $32,000 of inventory and other working capital upfront {year 0}, but argues that this sum can be ignored since it is recoverable at the end of the ten years. Expected proceeds from scrapping the machinery after ten years are $19,050. If the company pays tax at a rate of 20% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains inhouse instead of purchasing them from the supplier? Project the annual free cash ows [FCF] of buying the chains. The annual free cash ows for years 1 to 10 of buying the chains is $:|. [Round to the nearest dollar. Enter a free cash outow as a negative number.)

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