Problem $5$: Fortune Inc. manufactures customized business card holders $($BCHs$).$ using their several lines of additive manufacturing machines $($aka $3-$D printers$).$ An outside $3-$D printing firm has offered to produce the $BCH$ s at a unit price of $$\frac{35}{B}CH$ as long as the order is for at least $100,000$ units. The lead engineer for Fortune Inc has estimated the expected demand to be $120,000BCH$ units each year over the next $5$ years. If Fortune Inc decides to manufacture the $BCH$ themselves, they will investment in a new $3-$D printer that will cost $$2\mathrm{.}2M$ and will have a salvage value of $$120,000$ after $5$ years. Unit production cost is estimated in the table below. The Fortune Inc. CFO has identified a MARR of $12\%$ for assessing economic investment decisions.

$\backslash$table$[[$Direct material,$$8\mathrm{.}50$

$($a$)$ Draw the cash flow diagram for the $$make$$ option

$($b$)$ Calculate AE$(12\%)$ for the Fortune Inc. $$make$(3-$D printer investment$)$ option

$($c$)$ Calculate the unit cost for the Fortune Inc. $$make$$ option

$($d$)$ Should Fortune Inc. invest in the new equipment and $$make$$ in house or buy from the external

firm?