(2) Scenario study Please check the uncertainty table below. The company needs to make a decision between two options: A-Reduce the initial sales volume to 100000, but also reduce the costs on market launch (8.0) B-Reduce the cost of product development (4.0), but increase the cost of marketing and support (6.0) Which one is better (according to the results at the end of Year 4)? Model Values Uncertainty of Model Values Base Worst Best 15% -5% 25% 200000 100000 250000 $260 $225 $295 40% 50% 35% -10% -15% 5% Model Inputs Sales Volume Growth, machines Initial Sales Volume, machines Initial Retail Price, machines Distributor + Retail Margin Retail Price Growth, machines Product Development Equipment and Tooling Production Ramp-up Market Launch Marketing and Support Production Cost, machines Production Overhead 5.0 7.0 15% per year 200000 units/year $260 per unit 40% -10% per year 5.0 $M over 1 year 4.0 $M over 1/2 year 2.0 $M over 1/2 year 10.0 $M over 1/2 year 5.0 $M/year $55 per unit 1.0 $M/year 4.0 3.0 4.0 5.0 2.5 2.0 10.0 1.5 8.0 15.0 5.0 6.0 4.0 $55 $50 1.0 $60 1.2 0.8