Which of the cases shown is the most convenient for a company? Support your answer by conducting a Risk and Uncertainty Analysis. CASE I: The market research defined possible annual sales of 430,000 units at a unit price of $ 260 each, paying a sales commission of 1%. The cost study calculated that the following variable costs could be expected for this level of operation: direct material $ 60, labor $ 40 and manufacturing costs $ 20. Annual fixed manufacturing, administration and sales costs reach $ 22,000,000. The rental of buildings, warehouses and offices is included, since the only planned investment is that of production equipment. In addition, $ 8,000,000 of annual depreciation must be considered. The investment in equipment reaches $ 80,000,000, which requires a 12% annual return. All have a useful life of 10 years, after which they will have an estimated scrap value of $ 25,000,000. For accounting purposes, they depreciate fully and linearly in 10 years. Taxes amount to 15% of profits Case II: In the technical study, the existence of a smaller team was detected, with a capacity of up to 400,000 units per year. Although this machine leaves unsatisfied demand, this will allow the sale price to rise to $ 280 and take advantage of economies of scale, which would reduce the cost of the material to $ 50. The fixed costs of this alternative would reach $ 18,000,000 per year. This equipment would cost $ 72,000,000 and it is estimated that at the end of its useful life it will have a scrap value of $ 28,000,000. It also depreciates in 10 years.