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Horizon Insurance Relevant Cash Flows Make Buy
Horizon Insurance Relevant Cash Flows Make Buy
Horizon Insurance Relevant Cash Flows Make Buy
Relevant Costs
Make Buy
Materials: Generic 15000 0
Materials: Custom 25000 0
Labor: Wages 290000 0
Labor: Severance 0 30000
Manager's Salary 48000 0
Office (Internal) 10000 10000
Office Rental 12000 0
Depreciation 32500 0
Other Exp. 25000 0
Share of Allocated G&A 30000 30000
Contract Price 0 410000
Total 487500 480000 -7500 Difference
Sale of Equipment 80000
Sale of Material 60000
140000
ear one time saving 35000 (140000/4)