In doing his analysis, Mr. Ben discovered that the appeal of baseball cards was not only in opening a wrapper and nding a favorite player enclosed but also that any baseball cards initially purchased for pennies had gained substantially in value. Once a player achieved star status, his rookie card (rst issued) might greatly increase in worth. Figure 1 Child Phy Company Year Sales Net income 1997 ....................................................... $ 150,000 $ (18,000) 1998 240,000 (5,000} 1999 ....................................................... 758,000 72,000 2000 ....................................................... 1,340,000 91 ,000 2001 2,680,000 175,000 2002 ....................................................... 3,320,000 198,000 2003 ....................................................... 5,580,000 248,000 2004 6,792,000 387,000 2005 ....................................................... 5,941,000 291 ,000 2006 ....................................................... 9,237,000 439,000 2007 11,622,000 566,000 2008 ....................................................... 12,140,000 621,000 2009 ....................................................... 17,185,000 850,000 2010 22,838,000 1,221,000 201 1 ....................................................... 27,782,000 1 ,437,000 2012 ....................................................... 32,437,000 1,628,000 2013 38,911,000 1,762,000 2014 ....................................................... 39,750,000 2,002,000 2015 ....................................................... 39,880,000 1 ,950,000 For example, the 1968 rookie card of Nolan Ryan was selling for $2,000 in early 2015. The 1963 Pete Rose rookie card was valued at $500 and, finally, the rst Topps card of Mickey Mantle issued in 1952 at 1 cent carried a trading value of $30,000 ve decades later. While the card manufacturer did not directly participate in this price appreciation, the hope for such gains in the future keeps youngsters and adults continually active in buying cards as they come out. To convince management that the manufacturing and selling of baseball cards was a suitable activity for his rm, Mr. Ben had to make a thorough capital budgeting analysis for the executive committee of Child Phy Company