The following information deals with considerations regarding a new product. If the product in question is to be manufactured, it will be necessary to build a new production line, which will require the following capital investments: Injection molding machine: RM2.7 million Molds: RM2.7 million Vision system: RM1.7 million Automation equipment: RM4.7 million Interior furnishings, etc.: RM1.7 million

Assume the company's MARR is 15% per year.

1) Evaluate whether this is a profitable investment or not. Assume no salvage value of the equipment after 5 years.

2) Construct a spider plot of equivalent worth (PW, AW, or FW) if the initial capital investment for the project varies by + 50% and sale revenue varies by +40%.

Year 1 2 3 3.75 6.60 15.40 0.20 4 5 21.90 27.90 0.25 0.30 0.05 0.10 Sales revenue (million RM) Costs for sterilization (million RM) Costs for materials (million RM) Payroll costs (million RM) Additional costs (million RM) 1.80 3.10 5.60 7.40 8.95 0.20 0.40 0.15 0.90 0.50 0.05 0.60 0.05 0.30 0.10