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Procter & Gamble Co. is considering outsourcing its manufacturing operations to a third-party supplier. The outsourcing arrangement is expected to result in annual cost savings

Procter & Gamble Co. is considering outsourcing its manufacturing operations to a third-party supplier. The outsourcing arrangement is expected to result in annual cost savings of $50 million compared to in-house production. However, there are additional risks associated with outsourcing, including supply chain disruptions. Calculate the net present value (NPV) of outsourcing for Procter & Gamble Co., considering a discount rate of 10%.

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