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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. LCC Study with TVM calculations assuming a discount factor of 3%: 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 with TVM calculations

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