The Assembly Division of American Car Company has offered to purchase 90,000 batteries from the Electrical Division for $90 per battery. At a normal volume of 250,000 batteries per year, production costs per battery are as follows: Direct $40 materials Direct labor $12 Variable $10 overhead Fixed overhead $40 The Electrical Division has been selling 250,000 batteries per year to outside buyers at $136 each; capacity is 350,000 batteries per year. Assembly Division currently buys batteries from outside sources for $130 each. If Electrical accepts Assembly's offer, then what will be the financial advantage or disadvantage of internal trade for the Assembly Division? $1,620,000 advantage O $3,600,000 advantage O $2,520,000 advantage $5,220,000 advantage None of the above TRUE or FALSE? When calculating an investment's payback period, depreciation must be added back to operating income when determining the annual cash flow. O True O False TRUE or FALSE? The salvage value of new equipment should not be considered when using the internal rate of return method to evaluate the investment. True False