A carmaker company is thinking about introducing a new sport car.

The firm already produces different types of cars including luxury cars.

It is a $10-$year project.

It would require a $$200$ million investment.

a$/$ The firm estimates that they will be able to sell each year $20,000$ cars at $$40,000$ each.

However, $25\%$ of the customers will come from existing customers of the firm and who buy luxury cars.

We assume that the price of the luxury car is $$35,000.$

What will be the incremental revenues of the project?

b$/$ Let's suppose that the project will bring additional sales of $$90$ million each year from posters, gadgets, and other

secondary items. What is the new incremental revenue?

c$/$ The cost of goods sold will be $$600$ million the first year and increase by $1\%$ every year.

In addition, the firm considers to launching an advertising campaign. It will cost $$10$ million the first year, $$6$

million the second year, and $$3$ million the following two years, then no thing after.

What are the incremental EBITDAs?

Show on a spreadsheet all the relevant items like in an income statement until EBITDA for year $0$ and each of the

following $10$ years.

d$/$ Let's suppose that you depreciate linearly the $$200$ million in plant and equipment linearly over the $10$ years.

Also, there is no debt, and the tax is $35\%.$

What are the incremental net incomes?

Again, show on a spreadsheet all the relevant items like in an income statement until net income for year $0$ and each

of the following $10$ years. $($Of course, take the spreadsheet from $\frac{c}{a}nd$ continue until net income$)$