What is the net present value of a project that requires a net investment of $76,000 and produce net cash flows of $22,000 per year for seven years? Assume the cost of capital is 15% and net terminal cash flow of negative $16,000?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.