Problem 3-10 (Algo) The TuffWheels was getting ready to start its development project for a new product to be added to its small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillartracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddv Dozer. The following table contains the relevant information for this project. Development cost $756,696 Estimated development time 9 months Pilot testing $296,696 Rampup cost $496,696 Marketing and support cost $156,696 per year Sales and production volume 66,696 per year Unit production cost $ 166 Unit price $ 155 Interest rate 8 96 Tuff Wheels also has provided the project plan shown as follows. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created. PROJECT SCHEDULE YEAR 1 YEAR. 2 YEAR 3 YE as 4 Krom'DozER Q: 02 Q; 04 0.] Q;