You are considering to buy a new robotic equipment for your company at a cost of $30000 in order to produce a new type of product. You believe that the operating costs of this production will be $1000 this month in constant dollar terms and operating cost per month will increase by 5% every month in constant dollars. The equipment also requires maintenance which costs $5000 every year in actual dollars. Assume that the service life of this new equipment is 5 years and at the end of 5 years, the salvage value of the robotic equipment will be $5000 in constant dollars. Assuming that the market interest rate (i.e. MARR) is %20 compounded quarterly and inflation rate is 15% per year.

a) Determine the present worth of this investment.

b) Assuming that 500 units of a product are produced per month with this equipment, find the cost per unit in actual dollars.

c) If the company wants to obtain a unit profit margin of 15% for each product, what should be selling price of the product, assuming that this price will be kept the same in actual dollars over the next 5 years.