Garcia Inc., is in the process of evaluating a new product using the following information: A new personal air conditioner has 4.5 production runs each year. The new personal air conditioner incurred $50,000 in development costs and is expected to be produced over the next three years. Direct costs of producing the personal air conditioners are $55,000 per run of 5,000 personal air conditioners each. The personal air conditioners are selling for $45 the first year and will increase by $2 each year thereafter. Sales units equal production units each year. What are estimated life-cycle revenues? $1,012,500 $3,127,500 $3,172,500 $2,070,000