I need to use this information in the creation of a new product development. The concepts that will be used are NPV, variance analysis or contribution. Do let me know if someone has any idea how to work this out. Its about two products and im not sure how to begin with the values provided.

Project 1 involves upgrading the existing smartphone product line. The new microprocessor chip, camera technology and wireless chipset will cost $10,00,000, $2,000,000, and $5,000,000 respectively to develop, test, and ready for manufacture. Software upgrade costs will be $10,000,000- Continuous maintenance and improvement of the software will cost 50,000 hours of engineering time per year. Consulting services 'om Qualcomm will be required at a cost of $2,250,000 for the rst year, and 2 additional years reduced 50% in the 2nd year and 50% of that in year 3. Retooling of manufacturing for new phone assembly will cost $2,000,000. Annual incremental maintenance costs in manufacturing will be $100,000. Finally, training on manufacturing and maintenance procedures will cost $1,250,000 and will require an average of 20 hours for 300 hourly workers. The average labor rate for manufactm'ing personnel is $35 per hour + $25 per hour in benets (together known as the fully loaded hourly rate). Project 1 product sales are estimated based on historic sales patterns of earlier iterative product launches. Unit sales of the new $1,000 phone is estimated to be 60,000 in year 1, 24,000 in year 2, and 4,800 in year 3. Price is expected to decline 10% in year one due to sales promotions, 30% of the original price in year 2, and then an additional 20% (for a total 60% of the original launch price) in year 3. On average, the introduction of the new phone will result in lost sales for existing phones. This will equate to lost sales of 24,000 units, 18,000, and 12,000 units in years 13 at an average price of $600, $500, $400 in years 13. Project 2 involves major reengineering and innovation of technology, soware, and usability for the new concept product The phonetab is like a combination of a smartphone and a tablet, with the new platform offering new opportunities for the creation of new services that are not yet been considered or even conceived. The new microprocessor chip, camera technology (including mini attachable lens) and wireless chipset will cost $15,00,000, $5,000,000, and $10,000,000 respectively to develop, test, and ready for manufacture. The new product shell (housing case) and foldable screen technology will cost $20,000,000 to develop and ready for market (text, manufacture, etc.) Software upgrade costs will be upwards of $25,000,000- Continuous maintenance and improvement of the software will cost 25 0,000 hours of engineering time per year. Consulting services from Qualcommwill be required at a cost of $10,000,000 for the rst year, and 2 additional years reduced 20% in the 2nd year cost 20% of that in year 3. Retooling of manufacturing for new phone assembly will cost $8,000,000. Annual incremental maintenance costs in manufacturing will be $1,000,000. Finally, training on manufacturing and maintenance personnel $5,000,000 and will require an average of 100 hours for 300 hourly workers. The average lab-or rate for manufacturing personnel is $65 per hour Jlly loaded (i.e., with benets). The Project 2 product sales are estimated based on historic sales patterns of earlier smartphone and tablet launches, when new generations are launched. Due to the uniqueness of the phonetab, sales estimates have been tempered. Unit sales of the new $2,500 phonedab is estimated to be 6,000 in year 1, 12,000 in year 2, and 3,400 in year 3. Price discounts to introduce product 2 and to build the market are expected to reach 20% in year 1, with 30% 013' le launch price in year 2 and 40% off the launch price in year 3. Attachable lenses in one unit package (1 zoom and 1 wide angle lens in 1 package) are expected to be sold with a phonedab purchase in 25% of all phonetab unit sales, at a unit price of $50 aer $10 dollar discount It is expected that a new