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A small, US-based manufacturing firm is interested developing a new product to that would be produce sold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product prediction of the number of units sold each year) anticipates that 72,000 units can be sold the first ye price of $99.95 per unit. However, after that, sales are expected to decline each year according to learning curve. The required manufacturing process can produce 12 units of product per hour, up to a maximum of 7 units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equip which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value end of its useful life. While the equipment belongs to the 7-year MACRS property class, the firs depreciate the equipment using the most advantageous method allowed by US tax law. The manufacturing process requires the labor of a team of semi-skilled operators that are estimated a total of $72 per hour (including wages and benefits). The cost of the raw materials needed to pro single unit of the product is estimated to be $80. Operating and maintenance costs are estimated to per hour of operation and general overhead expenses are estimated to be $400,000 per year. The manufacturing firm is subject to a corporate federal income tax rate of 21% and a corporate state i tax rate of 6%, with state taxes deductible from the federal tax. Develop an appropriate financial analysis of this situation and use it to answer the following question you answer these questions, be sure to clearly and explicitly state any assumptions you need to mal your rationale for making them. 1) Assuming that the firm's management team wants to achieve a least a 20% after-tax minimum attr rate of return, should the new product be developed? Be sure to show or explain why or why not. 2) What is the minimum selling price needed to produce at least a 20% after-tax rate of return? In thi what are both the payback period and the equivalent uniform annual, after-tax profit per year? to explain or show how you determine these values. 3) Suppose now that the federal corporate income tax rate is raised to 28% in 2022. What impact this have on the minimum selling price needed to produce at least a 20% after-tax rate of return? E No formal report is required but be sure that your assumptions, analysis, answers, and explanatio clearly stated and easy to identify. ENM 530/ISE 430 - Spring 2021 Case Study Assignment - New Product Introduction A small, US-based manufacturing firm is interested developing a new product to that would be produc sold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product prediction of the number of units sold each year) anticipates that 72,000 units can be sold the first ye price of $99.95 per unit. However, after that, sales are expected to decline each year according to learning curve. The required manufacturing process can produce 12 units of product per hour, up to a maximum of units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equip which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value end of its useful life. While the equipment belongs to the 7-year MACRS property class, the fin depreciate the equipment using the most advantageous method allowed by US tax law. The manufacturing process requires the labor of a team of semi-skilled operators that are estimated a total of $72 per hour (including wages and benefits). The cost of the raw materials needed to pro single unit of the product is estimated to be $80. Operating and maint ce costs are estimated to per hour of operation and general overhead expenses are estimated to be $400,000 per year. The manufacturing firm is subject to a corporate federal income tax rate of 21% and a corporate state i tax rate of 6%, with state taxes deductible from the federal tax Develop an appropriate financial analysis of this situation and use it to answer the following question you answer these questions, be sure to clearly and explicitly state any assumptions you need to mal your rationale for making them. 1) Assuming that the firm's management team wants to achieve a least a 20% after-tax minimum att rate of return, should the new product be developed? Be sure to show or explain why or why not. 2) What is the minimum selling price needed to produce at least a 20% after-tax rate of return? In thi what are both the payback period and the equivalent uniform annual, after-tax profit per year? to explain or show how you determine these values. 3) Suppose now that the federal corporate income tax rate is raised to 28% in 2022. What impact this have on the minimum selling price needed to produce at least a 20% after-tax rate of return? E No formal report is required but be sure that your assumptions, analysis, answers, and explanatio clearly stated and easy to identify If desired, you may work on this assignment in teams of 2-3 persons. You may select your own teammates to work individually. However, please keep in mind that the larger the team, the greater the instructor's expec will be with respect to details when the report is graded! (For example, the instructor expects fewer typogn errors, calculation errors or omissions when multiple persons work as a team.) When submitting your work, please be sure to Provide only ONE submission per team and clearly identify all team members, and Clearly show all your computations within an Excel workbook You may either include your answers, explanations, and other written remarks within the same Excel work submit those in a separate document A small, US-based manufacturing firm is interested developing a new product to that would be produce sold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product prediction of the number of units sold each year) anticipates that 72,000 units can be sold the first ye price of $99.95 per unit. However, after that, sales are expected to decline each year according to learning curve. The required manufacturing process can produce 12 units of product per hour, up to a maximum of 7 units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equip which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value end of its useful life. While the equipment belongs to the 7-year MACRS property class, the firs depreciate the equipment using the most advantageous method allowed by US tax law. The manufacturing process requires the labor of a team of semi-skilled operators that are estimated a total of $72 per hour (including wages and benefits). The cost of the raw materials needed to pro single unit of the product is estimated to be $80. Operating and maintenance costs are estimated to per hour of operation and general overhead expenses are estimated to be $400,000 per year. The manufacturing firm is subject to a corporate federal income tax rate of 21% and a corporate state i tax rate of 6%, with state taxes deductible from the federal tax. Develop an appropriate financial analysis of this situation and use it to answer the following question you answer these questions, be sure to clearly and explicitly state any assumptions you need to mal your rationale for making them. 1) Assuming that the firm's management team wants to achieve a least a 20% after-tax minimum attr rate of return, should the new product be developed? Be sure to show or explain why or why not. 2) What is the minimum selling price needed to produce at least a 20% after-tax rate of return? In thi what are both the payback period and the equivalent uniform annual, after-tax profit per year? to explain or show how you determine these values. 3) Suppose now that the federal corporate income tax rate is raised to 28% in 2022. What impact this have on the minimum selling price needed to produce at least a 20% after-tax rate of return? E No formal report is required but be sure that your assumptions, analysis, answers, and explanatio clearly stated and easy to identify. ENM 530/ISE 430 - Spring 2021 Case Study Assignment - New Product Introduction A small, US-based manufacturing firm is interested developing a new product to that would be produc sold starting in 2022. Based on a preliminary market analysis, a demand forecast for the product prediction of the number of units sold each year) anticipates that 72,000 units can be sold the first ye price of $99.95 per unit. However, after that, sales are expected to decline each year according to learning curve. The required manufacturing process can produce 12 units of product per hour, up to a maximum of units per year. It would cost $4,000,000 to purchase and install the necessary manufacturing equip which would have a 10-year useful life. The equipment is expected to have little, if any, salvage value end of its useful life. While the equipment belongs to the 7-year MACRS property class, the fin depreciate the equipment using the most advantageous method allowed by US tax law. The manufacturing process requires the labor of a team of semi-skilled operators that are estimated a total of $72 per hour (including wages and benefits). The cost of the raw materials needed to pro single unit of the product is estimated to be $80. Operating and maint ce costs are estimated to per hour of operation and general overhead expenses are estimated to be $400,000 per year. The manufacturing firm is subject to a corporate federal income tax rate of 21% and a corporate state i tax rate of 6%, with state taxes deductible from the federal tax Develop an appropriate financial analysis of this situation and use it to answer the following question you answer these questions, be sure to clearly and explicitly state any assumptions you need to mal your rationale for making them. 1) Assuming that the firm's management team wants to achieve a least a 20% after-tax minimum att rate of return, should the new product be developed? Be sure to show or explain why or why not. 2) What is the minimum selling price needed to produce at least a 20% after-tax rate of return? In thi what are both the payback period and the equivalent uniform annual, after-tax profit per year? to explain or show how you determine these values. 3) Suppose now that the federal corporate income tax rate is raised to 28% in 2022. What impact this have on the minimum selling price needed to produce at least a 20% after-tax rate of return? E No formal report is required but be sure that your assumptions, analysis, answers, and explanatio clearly stated and easy to identify If desired, you may work on this assignment in teams of 2-3 persons. You may select your own teammates to work individually. However, please keep in mind that the larger the team, the greater the instructor's expec will be with respect to details when the report is graded! (For example, the instructor expects fewer typogn errors, calculation errors or omissions when multiple persons work as a team.) When submitting your work, please be sure to Provide only ONE submission per team and clearly identify all team members, and Clearly show all your computations within an Excel workbook You may either include your answers, explanations, and other written remarks within the same Excel work submit those in a separate document