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This document compares the costs of in-house manufacturing versus subcontracting over a 5-year period. The initial cash outlay for in-house is over $1 million for equipment and renovations, while subcontracting has no initial costs. In the first year, in-house costs are $7.6 million compared to $7.1 million for subcontracting. Over the 5 years, in-house costs rise to over $10.7 million in year 5 while subcontracting costs reach $13 million in year 5 as production increases.

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