2. The replacement marke The replacement market consist of all tires purchased after the automobile has left the factory. This marks allows higher margins; GoodScone expects to sell the SuperTread for 552 per tire there. Variable cost are the same as in the OEM marke GoodStone Tires and orale prices a percent above the Inflation rate; variable com will also increase at 1 percent above the inflation rate. In addition, the SuperTread project will incur $43 million in marketing and general administration cost the first year. This cost is expected to Increase at the inflation rate in the subsequent yea GoodStone corporate tax rate is 25% percent. Annual Inflation is expected to remain constant at 2,5 percent. The company 13.4 percent discount val product decisions Automotive industry analyt automobile manufactures to produce 5.2 this year and production to grow at 2.5 paper year thereafter. Each new car needs four tires (the spare tires are undersized and are in a different category). GoodStone Tires expects the Superfread to capture 11 percent of the CEM marker Industry analyse that the replacement tire market size will be 32 million tires this year and that it will grow at 2 percent annually. GoodStone expects the SuperTread to capture a percent market share The annual depreciation la calculated based on the seven- near depreciation schedule. The immediatal working capital requirements 50 million. Thereafter, the networking capital requirements will be 15 percent of s