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A PC manufacturer has a ROI minimum threshold of 50% for new investments. It estimates the following costs for the next model of laptop to

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A PC manufacturer has a ROI minimum threshold of 50% for new investments. It estimates the following costs for the next model of laptop to be introduced: o R&D costs for year 1: $500,000 o Design costs for year 2: $1,750,000 o Production costs for years 2-5: $650,000, $750,000, $800,000 and $700,000 respectively o Marketing costs for years 2-5: $650,000, $600,000, $500,000 and $150,000 respectively o Transportation and Warehousing costs for years 2-5: $300,000, $320,000, $270,000 and $180,000 respectively o Customer Service costs for years 2-5: $120,000, $220,000, $190,000 and $160,000 respectively o End-of-life costs for years 4-5: $550,000 and $1,200,000 respectively The manufacturer expects a sales volume for the years 2-5: 10,000, 18,000, 25,000 and 7,500 respectively and sales revenue: $2,700,000, $4,500,000, $7,300,000 $1,800,000 respectively II. Repeat the LCC study considering the time value of money, build and attach the LCC study spreadsheet and provide on the following pages the formula and results for the same items assuming a discount factor of 3%. Provide answers on the following sheets. Student Name: Student Number: I. LCC Study without TVM calculations: 1. Life Cycle Unit Cost: 2. Life Cycle Unit Revenue: 3. Life Cycle Unit Profit: 4. Break-even Year: 5. Return on Investment: 6. Does the ROI meet the minimum threshold: LCC Study spreadsheet without TVM calculations

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