. 1)Assume Kellogg's can sell 100 million boxes of Forsted Flakes each year worldwide. Each box of Forsted Flskes is sold for a wholesale price of $2.0, while generic cereals sell for $1.60 wholesale. Furthmore, assume each box has a profit margin of 40% for Kellogg'd, while similar generic cereals have almost identical costs of production. It has been estimated that the cost of advertising Tony the Tiger is approximately $.05 per box sold and the Kellogg's name itself does not add value.Furthermore, assume consumers slightly prefer the taste. If Tony's value is expected to last for 15 years and sales are flat, what is the value of Tony at a 10% discount rate?