The following is a comparison of the cost structure of a conventional manufacturing technology (CMT system with that of a flexible manufacturing system (FMS at one US firm: Most likely estimates CMT Number of part types 3,000 Number of pieces 544,000 544.000 produced year Variable labor cost/part $2.15 S1.30 Variable material cost/part S1.53 S1.10 Total variable cost/part $3.68 $2.40 Annual overhead costs $3.15 M $1.95 M Annual tooling costs $470,000 $300,000 Annual inventory costs $141,000 $31,500 Total annual fixed operating $3.76 M $2.28M costs Investment $3.5 M $10 M $0.5 M Salvage value si M Service life 10 years 10 years Depreciation methods 7 years 7 years (MACRS) a The firm's marginal tax rate and MARR are 40% and 15%, respectively. Determine the incremental cash b. Management feels confident about all input estimates for the CMT. However, the firms does not have any previous experience in operating an FMS. Therefore, many oftheinput estimates for that system, except the investment and salvage value, are subject to variation Perform a sensitivity analysis on the project's data, varying the elements of the operating costs. Assume that each of these variables can deviate from its base-case expected value by th- 10%, tl-20 and 30