Erosion costs. Ice Cream City plans to introduce a new flavor, wild berry, to its current set of five flavors, which include vanilla, French vanilla, strawberry, chocolate, and mint chocolate. The new sales of wild berry are projected in the popup window:

Year 1 2 3 4 5 6 7 8 9 Units 235,000 245,000 245,000 245,000 240,000 245,000 240,000 240,000 240,000

.The expected sales will come from both new customers and current customers who switch flavors. The current projected sales for the existing flavors (assuming no introduction of the new flavor) are shown in the popup window:

Year 1 2 3 4 5 6 7 8 9 Vanilla 305,000 320,000 310,000 330,000 335,000 330,000 355,000 350,000 350,000 F-Van 110,000 110,000 115,000 120,000 125,000 130,000 135,000 135,000 135,000 Straw 235,000 245,000 245,000 245,000 240,000 245,000 240,000 240,000 240,000 Choc 325,000 330,000 335,000 340,000 345,000 355,000 365,000 365,000 365,000 M-Choc 165,000 170,000 175,000 180,000 185,000 185,000 190,000 195,000 205,000

.However, if the company introduces wild berry, it will cut into the sales of the original flavors based on the following estimates in the poup window:

Year 1 2 3 4 5 6 7 8 9 Vanilla 0.05 0.05 0.04 0.04 0.03 0.03 0.02 0.02 0.01 F-Van 0.025 0.025 0.02 0.01 0.00 0.00 0.00 0.00 0.00 Straw 0.45 0.40 0.35 0.30 0.25 0.25 0.25 0.25 0.25 Choc 0.15 0.10 0.05 0.00 0.00 0.00 0.00 0.00 0.00 M-Choc 0.025 0.02 0.01 0.00 0.00 0.00 0.00 0.00 0.00

.

Here are the revenue and cost per unit of ice cream for Ice Cream City:

Vanilla: current revenue of

$3.03

per unit and cost of

$1.23

per unitFrench vanilla: current revenue of

$3.18

per unit and cost of

$1.36

per unitStrawberry: current revenue of

$3.29

per unit and cost of

$1.42

per unitChocolate: current revenue of

$3.26

per unit and cost of

$1.62

per unitMint chocolate: current revenue of

$3.21

per unit and cost of

$1.66

per unitWild berry: projected revenue of

$3.23

per unit and cost of

$1.46

per unit

Find the annual erosion of revenue, the cost savings, and the net cash flow with the new ice cream.

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