Question
Category Growth Rate 4% Incremental Growth Rate Historic/ Base Sales $139,500,000 Gross Margin Cost reductions since new design is less expensive $119,000 Development Marketing R
Category Growth Rate 4% Incremental Growth Rate Historic/ Base Sales $139,500,000 Gross Margin Cost reductions since new design is less expensive $119,000 Development Marketing R & D $700,000 Start-up Expenses Partial Case Returns Net of Salvage Value $1,800,000 Label conversion costs 700,000 Freight Charge/ Launch year expenses 400,000 Other miscellaneous 300,000 Tax Rate 27% Discount Rate 7% New Investment PP & E Cap/ Pump molds $1,590,000 Change parts 260,000 Pump Assembly 570,000 Depreciable life (years) 6 years. What is the initial investment?
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