Analyze the impact of building a more efficient manufacturing plant. eCar recognizes that their current manufacturing plant is not very efficient. Investing in their plant would allow greater use of robots and other automation, thus reducing the cost to produce cars. This would be a major change for the company and would have broad implications for their financials. They anticipate that they could use their current cash to pay for the investment. Management also expects to raise the average revenue on each car to $65,000 by offering more options. They expect the average cost to build the cars to go down to $40,000 per car. This reduction is due to the reduction of some labor and better integration of the electronics in the car. They expect to be able to sell 450,000 cars next year. a.Return to the original data given in Exhibit 1.6. Assume that they use $2 billion of their cash and invest it in new equipment. Also, assume that they can raise the average revenue and lower the average cost as stated previously. What would be the expected profit margin, asset turnover, and return on assets for the company after the change? b.Looking at different worst- and best-case scenarios is often good. What if eCar can only increase the revenue per car to $58,000 and only reduce the cost to $42,000? What would be the expected profit margin, asset turnover, and return on assets if this happened (assume they make the investment in the equipment)? c.What questions might you explore with management to evaluate the assumptions that were made in your calculations?