=+The net cash flows before depreciation of plant and machinery and before market-

ing expenditure for each umbrella will be £1.

The products will be introduced both in the UK and in France.

The marketing costs in Years 2 to 11 will be £50,000 per annum.

If the product catches the imagination of the consumer in both countries then sales in the first year are anticipated at 1m umbrellas.

If the fashion press ignore the new products in one country but become enthusias-

tic in the other the sales will be 700,000 umbrellas in Year 1.

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