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:

Question $12$Select one:

a$.$

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

b$.$

Choose the method that maximizes firm value.

c$.$

Choose the method that minimizes initial cash outflows.

d$.$

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

e$.$

Choose the method that maximizes future cash inflows.