If variability of selling price per unit (consider current selling price is $10.50 per unit) may range from -15% to +15% (i.e. selling price per unit cannot decrease by less than 15% of the current selling price and cannot increase by more that 15% of the current selling price) and variability of raw material cost per unit (consider raw material cost per unit as $8) may range from -15% to +15%, find After-Tax Net Present Value (ATNPV)

for simultaneous change in selling price and raw material cost to fill the table below (consider After-Tax MARR is 12%):

You are the engineering representative on a team for a new product introduction. The proposed manufacturing process uses a semi-automated machine along with people. Components for each unit of the product cost $8 (Note: This is raw material cost for each unit). The semi-automated machine costs $1,500,000 and it has a 7-year MACRS recovery period. The salvage value is $0 for this specially designed machine. This machine can manufacture 175 units per hour. Required Production Volume (1000's) 3 5 Year 1 2 4 6 7 8 9 Volume 195 275 385 550 625 695 630 550 295 The normal manufacturing operation runs 8 hours per shift per day. Initial production would begin with one shift, 5 days a week. Each working year has 50 weeks (250 regular working days) to allow for vacations. The total labor cost is $50 for each regular time hour that the machine operates and $65 for overtime. The production operation can operate a maximum of 8 extra hours/week, if needed to meet the demand without adding an extra shift. Employee likes to eam some" overtime. Thus, the overtime option is more desirable than adding a second shift if overtime can meet the demand. Other require information: Corporate MARR 12% (after tax) Tax Rate 35% Maintenance Cost 12% of raw material cost Overhead cost 2% of raw material (utilities, supervision, marketing, etc.) The decision of whether to release the new product into production requires answers to the following questions (considering planning horizon = 9 years): You are the engineering representative on a team for a new product introduction. The proposed manufacturing process uses a semi-automated machine along with people. Components for each unit of the product cost $8 (Note: This is raw material cost for each unit). The semi-automated machine costs $1,500,000 and it has a 7-year MACRS recovery period. The salvage value is $0 for this specially designed machine. This machine can manufacture 175 units per hour. Required Production Volume (1000's) 3 5 Year 1 2 4 6 7 8 9 Volume 195 275 385 550 625 695 630 550 295 The normal manufacturing operation runs 8 hours per shift per day. Initial production would begin with one shift, 5 days a week. Each working year has 50 weeks (250 regular working days) to allow for vacations. The total labor cost is $50 for each regular time hour that the machine operates and $65 for overtime. The production operation can operate a maximum of 8 extra hours/week, if needed to meet the demand without adding an extra shift. Employee likes to eam some" overtime. Thus, the overtime option is more desirable than adding a second shift if overtime can meet the demand. Other require information: Corporate MARR 12% (after tax) Tax Rate 35% Maintenance Cost 12% of raw material cost Overhead cost 2% of raw material (utilities, supervision, marketing, etc.) The decision of whether to release the new product into production requires answers to the following questions (considering planning horizon = 9 years)