The operations manager at Sebago Manufacturing is considering three proposals for supplying a critical component for its new line of electric watercraft. Proposal $1$ is to purchase the component; proposal $2$ is to make the component in$-$house using rebuilt equipment; and proposal $3$ is to purchase new, highly automated equipment. The costs associated with each proposal are provided in the accompanying table.

Problems

$\backslash$table$[[$Proposal$,\backslash$table$[[$Annual cost of capital$],[$required$]],\backslash$table$[[$Variable cost of each$],[$component$]]],[1$: Purchase,$$0\mathrm{.}00,$$$22\mathrm{.}00$