Question 5 (20 points] A food company is trying to improve its juice production and offerings to meet the customer expectations and demand. Assume that the major cost estimates below have been made based on a 3-month study about two new products that could have a 10-year life span for the company. Use LCC (life cycle cost) analysis at the industry MARR of 18% to determine the size of the commitment in annual worth terms. (Note: Time is indicated in product-years. Since all estimates are for costs, they are not preceded by a minus sign.) Cost componenet Cost ($) Consumer habits study (year o) $0.5 million Preliminary food product design (year 1) 0.9 million Preliminary equipment/plant design (year 1) 0.5 million Detail product designs and test marketing 1.5 million each year (years 1,2) Detail equipment/plant design (year 2) 1.0 million Equipment acquisition (years 1 and 2) $2.0 million each year Current equipment upgrades (year 2) 1,75 million New equipment purchases (years 4 and 8) 2.0 million (year 4) +10% per purchase thereafter 200,000 (year 3) + 4% per year thereafter Annual equipment operating cost (AOC) (years 3-10) Marketing: year 2 years 3-10 $8.0 million 5.0 million (year 3) and 1-0.2 million per year thereafter] 3.0 million extra $20 per hour [year 3) + 5% per year year 5 only Human resources, 100 new employees for 2000 hours per year (years 3-10) Phase-out and disposal (years 9 and 10) $1.0 million each year