Waterway Engine Incorporated produces engines for the watercraft industry. An outside manulacturer has offered to supply several component parts used in the engine assemblies, which are currently being produced by Waterway. The supplier will charge Waterway $290 per engine for the set of parts. Waterway's current costs for those part sets are direct materials, \$160; direct labor, \$70: and manufacturing overhead applied at 100% of direct labor. Variable manufacturing overhead is considered to be 20%6 of the total, and fixed overhead will not change if the part sets are acquired from the outside supplier. Required: a. What would be the net cost advantage or disadvantage if Waterway decided to purchase the parts? b. Should Waterway Engine continue to make the part sets or accept the offer to purchase them for $290 ? Southern Manufacturing Limited is considering the investment of $82,000 in a new machine. The machine will generate cash flow of $15,000 per year for each year of its nine year life and will have a salvage value of $9,000 at the end of its life. The company's cost of capital is 10%. Table 6.4 and Table. 6.5 . Note: Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals. Required: 0. Calculate the net present value of the proposed investment. (tgnore income taxes.) b. What will the internal rate of return on this investment be relative to the cost of capital? Complete this question by entering your answers in the tabs below. Calculate the net present value of the proposed investment. (Ignore income taxes.) Note: Negative amount should be indicated by a minus sign. Southern Manufacturing Limited is considering the investment of $82,000 in a new machine. The machine will generate cash flow of $15,000 per year for each year of its nine-year life and will have a salvage value of $9,000 at the end of its life. The company's cost of capital is 10%. Table 6.4 and lable . 6-5. Note: Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals. Required: a. Calculate the net present value of the proposed investment. (lgnore income taxes.) b. What will the internal rate of return on this investment be relative to the cost of capital? Complete this question by entering your answers in the tabs below. What will the internal rate of return on this investment be relative to the cost of capital