Racer Industries is currently purchasing Part No. 76 from an outside supplier for $83 per unit. Because of supplier reliability problems, the company is considering producing the part internally in an idle manufacturing plant. Annual volume over the next 6 years is expected to total 297,000 units at variable manufacturing costs of $78 per unit. Racer must acquire $83,000 of new equipment if it reopens the plant. The equipment has a 6-year service life, a $14,300 salvage value, and will be depreciated by the straight-line method. Repairs and maintenance are expected to average $5,500 per year in years 4-6, and the equipment will be sold at the end of its life.

Year	FV of $1 at 12%				FV of an ordinary annuity at 12%				PV of $1 at 12%				PV of an ordinary annuity at 12%
1		1.120				1.000				0.893				0.893
2		1.254				2.120				0.797				1.690
3		1.405				3.374				0.712				2.402
4		1.574				4.779				0.636				3.037
5		1.762				6.353				0.567				3.605
6		1.974				8.115				0.507				4.111

Required: Use the net-present-value method (total-cost approach) and a 12% hurdle rate to determine whether Racer should make or buy Part No. 76. Ignore income taxes. (Negative amounts should be indicated by a minus sign. Round your answers to the nearest dollar amount.)