Financial desicion

I need you to help to find the right financial decision for the below case in regards of the below question. Case: Intel Build vs. Buy: Incremental Cash Flows Evan Cole continues to contemplate Intel’s decision regarding whether to build part number 11235813 in-house or outsource the production. Cole previously calculated the appropriate discount rate for the project, and now turns his attention to estimating future cash flows. He has the following information, which he has collected from various other managers in the company. Intel has spent $500,000 designing and testing the part, and the decision to produce and sell the product has already been made. A supplier has bid to produce and deliver the part for $1 per unit, fixed for the life of the contract. Intel could also produce the part internally, but it would require some new investment as follows. Intel would need to use 20,000 square-feet of its primary production facility. The space is currently unused and Cole knows of no plans to make use of it in the near future. To pay-off the building, Intel charges projects $5 per square foot used per year. Intel would need to use 5-year old equipment with a current market value of $1 million (it was purchased for $2 million) for the new part. It would also have to buy new equipment worth $3 million. All of Intel’s equipment is depreciated over a 5-year life. Although the new equipment will be fully depreciated, Cole anticipates Intel will be able to sell the new equipment for $200,000 at the end of the 7-year lifetime of this project. Intel will shift an experienced production manager from an ongoing product to oversee the new part. Even though an experienced production manager costs $90,000, compared to $70,000 for a new one, Intel has found that it is worth it for new processes. The marketing manager for this new line will earn $75,000. The labor force for production would be hired new at a cost of $200,000. Material cost to produce the units will be $0.50 per unit. All salaries and wages increase at 5% per year and material costs will increase at 3% per year. Intel expects to have taxable income for the foreseeable future, and estimates its marginal tax rate at 21%. Intel expects to need 3 million units per year for three years, 2 million the following year, 1 million in year 5 and then 500,000 for years 6 and 7 before closing down production. Equipment purchases would happen immediately. Production expenses would start in year 1. If the contract is chosen, purchases would begin in year 1. Cole stares at the information before him. Before he can start building his Excel model, he needs to identify all of the relevant cash flows and any other issues. Questions: 1.) How would you define the "project"? 2.) What are the incremental cash flows for the project? 3.) What is the NPV of the project assuming a WACC of 7.78%? Should Intel undertake this project?