Racer Industries is currently purchasing Part No. 76 from an outside supplier for $92 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 288,000 units at variable manufacturing costs of $87 per unit. Racer must acquire $92,000 of new equipment if it reopens the plant. The equipment has a 6-year service life, a $15,200 salvage value, and will be depreciated by the straight-line method. Repairs and maintenance are expected to average $6,400 per year in years 4-6, and the equipment will be sold at the end of its life. PV of an ordinary annuity at 178 Year FV of $1 at 17% 1 1.170 FV of an ordinary annuity at 178 1.000 PV of $1 at 17% 0.855 0.855 2 1.369 2.170 0.731 1.585 3 1.602 3.539 0.624 2.210 1.874 5.141 0.534 2.743 2.192 7.014 0.456 3.199 2.565 9.207 0.390 3.589 Required: Use the net-present-value method (total-cost approach) and a 17% 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.) Buy: Purchase $ 95,094,144 Make: Variable manufacturing costs $ 89,925,984 New Equipment 92,000 Repairs and maintenance 5,414 Equipment sale $ 12,996 Total $ 90,010,402 Racer should make or buy Make