# ntroducing a new product

As a manager of a small business, you are considering to introduce a new product. The production requires a new machine. You figure out that you could buy it for \$190,000, but the price could be in between \$180,000 and \$200,000. Because of the budget limitation you can only pay 60% of the machine price with your own saving. You will borrow the other 40% with an interest rate around 9% per year (but subject to change in between 8.5% and 10%).
The demand of this product is predicted to be 15,000 per year and but could be in between 14800 and 15500. The unit price could be in between \$2 and \$3, and now you believe that \$2.5 is a reasonable price right now. The raw material cost is estimated to be \$0.9 but could be in between \$0.5 and \$1.2. The operation cost of the equipment is around \$0.2 for one product but could be in between \$0.1 and \$0.25. The maintenance cost for this equipment is estimated to be \$2000 per year but could be in between \$1500 and \$2300.
Suppose you could always invest your cash in the money market that give a return at 8% per year for sure.