Austin's cell phone manufacturer wants to upgrade their product mix to encompass an exciting newfeature on their cell phone. This would reguire a new high$-$tech machine. You are excited about hisnew project and are recommending the purchase to your board of directors. Here is the informationyou have compiled to complete this recommendation:

Unit selling priceUnit variable costFixed CostsDepreciation costsExpected sales

S$45$$$25,$S$200,000,$S$35,000,10,000$ units per year

According to the information, the project will last $10$ years and require an initial investment of$$800,000,$ depreciated with straight$-$line over the life of the project until the final value is zero. Thefirm's tax rate is $30\%$ and the reguired rate of return is $12\%.$ You believe that the variable cost ancsales volume may be as much as $10\%$ higher or lower than the initial estimate. Your boss understandsthe risks but asks you to explain the alternatives in a brief memo to the board. Write a memo to theBoard of Directors objectively weighing out the pros and cons of this project and make yourrecommendationls$).$ Austin's cell phone manufacturer wants to upgrade their product mix to encompass an exciting new

feature on their cell phone. This would require a new high$-$tech machine. You are excited about his

new project and are recommending the purchase to your board of directors. Here is the information

you have compiled to complete this recommendation:

According to the information, the project will last $10$ years and require an initial investment of

$$800,000,$ depreciated with straight$-$line over the life of the project until the final value is zero. The

firm's tax rate is $30\%$ and the required rate of return is $12\%.$ You believe that the variable cost and

sales volume may be as much as $10\%$ higher or lower than the initial estimate. Your boss understands

the risks but asks you to explain the alternatives in a brief memo to the board. Write a memo to the

Board of Directors objectively weighing out the pros and cons of this project and make your

recommendation$($s$).$