Your company is considering two different methods of producing its product: purchase production equipment, or contract with a supplier to build the product for them. The methods have differing lives and cash flow streams. You should:

Multiple Choice

Choose the method that will result in the highest net income.

Choose the method that minimizes initial cash outflows.

Choose the method that maximizes future cash inflows.

Choose the method that will least affect the statement of financial position of the company.

Choose the method that maximizes firm value.