Brian and Sharon are both vice-presidents at a national merchandising company. Each of them is charged with the task of independently researching new ideas for the company to jump-start a new product line aimed at millennials. The CEO asked them to keep their proposals within a 3-year time frame, recognizing that a different product line would likely need to take its place at the end of that 3-year period. Here is what each proposed to the executive management team: Brian Amount Timing Up-front asset investment (3-year life, no salvage value) New operating costs for social media and R&D activities Expected net cash inflows (Sales - Product costs) $118,500 Immediate 51,000 Each year 80,000 Year 1 100,000 Year 2 80,000 Year 3 Sharon Amount Timing Up-front asset investment (3-year life, no salvage value) $60,000 Immediate New operating costs for social media and R&D activities 98,000 Each year Net cash inflows (additional gross margin) 98,000 Year 1 131,000 Year 2 150,000 Year 3 Neither Brian nor Sharon has completed a quantitative analysis, as both want to receive initial feedback from the entire executive management team and incorporate that into their final analyses.