since it is recoverable at the end of the ten years. Expected proceeds from scrapping the machinery after ten years are $17,625. 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 in-house instead of purchasing them from the supplier? Project the annual free cash flows (FCF) of buying the chains. The annual free cash flows for years 1 to 10 of buying the chains is $ (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the NPV of buying the chains from the FCF. The NPV of buying the chains from the FCF is $ (Round to the nearest dollar. Enter a negative NPV as a negative number.) Compute the initial FCF of producing the chains. The initial FCF of producing the chains is $. (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the FCF in years 1 through 9 of producing the chains. The FCF in years 1 through 9 of producing the chains is $ (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the FCF in year 10 of producing the chains. The FCF in year 10 of producing the chains is $ (Round to the nearest dollar. Enter a free cash outflow as a negative number.) Compute the NPV of producing the chains from the FCF. The NPV of producing the chains from the FCF is (Round to the nearest dollar. Enter a negative NPV as a negative number.) Compute the difference between the net present values found above. The net present value of producing the chains in-house instead of purchasing them from the supplier is ! . (Round to the nearest dollar.)