Voltaic Electronics uses a standard part in the manufacture of different types of radios. The total cost of producing 26,000 parts is $95,000, which includes fixed costs of $40,000 and variable costs of $55,000. The company can buy the part from an outside supplier for $2 per unit and avoid 20% of the fixed costs. Assume that the company can use the freed manufacturing space to make another product that can earn a profit of $17,000. If Voltaic outsources, what will be the effect on operating income? O A. increase of $28,000 B. increase of $17,000 C. decrease of $8,000 D. decrease of $28,000 Stellan Manufacturing is considering the following two investment proposals: Proposal X $730,000 Proposal Y $508,000 5 years 4 years Investment Useful life Estimated annual net cash inflows received at the end of each year Residual value Depreciation method Annual discount rate $150,000 $54,000 Straight-line 10% $104.000 $0 Straight-line 9% Compute the present value of the future cash inflows from Proposal Y. Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 4 3.312 3.240 3.170 5 3.993 3.809 3.791 6 4.623 4.486 4.355 O A. $271,018 OB. $336,960 O c. $254.000 OD. $294,640