A new printer system is about to be introduced by a high-tech company. The company is forecasting for years 1-5 the following annual values Costs: Product volumes: $1.50M, $1.25M, $1M, $0.75M and $0.5M 0, 10,000, 12,500, 15,000 and 2,500 units $0, $1.25M, $2M, $2.5M and $0.75M Product revenues: 1. (30 points) Using the following spreadsheet, determine for the product considered the Life Cycle Unit Cost Life Cycle Unit Revenue Life Cycle Unit Profit Break-even year ROI Year 1 Year 2 Year 3 Year 4 Year 5 Total Annual Costs Product Volume Sales Revenue Profit Life Cycle Costs Life Cycle Volume Life Cycle Revenue Life Cycle Profit Life Cycle Unit Cost (Total Life Cycle Costs/Total Life Cycle Product Volume) Life Cycle Unit Revenue (Total Life Cycle Revenue / Total Life Cycle Product Volume) Life Cycle Unit Profit (Total Life Cycle Profit / Total Life Cycle Product Volume) Break-even Year (Year when Life Cycle Profit becomes positive) Return on Investment (ROI) (Total Life Cycle Profit/Total Life Cycle Costs) * 100 2. An alternative product-pricing program could yield the following stream of revenues instead of the above stream: 0, $1.25M, $2.5M, $2.25M and $0.5M. (10 points) Is there a change in ROI with this alternative? Why? 3. If present value calculations were to be performed, which pricing scheme (original or alternative) would the company prefer? (10 points) Why