Instructions: Create an NPV table

(1) The current table only include Year 1-3. Please create Year 4. Model Inputs Sales Volume Growth, machines Initial Sales Volume, machines Initial Retail Price, machines Distributor + Retail Margin Retail Price Growth, machines Product Development Equipment and Tooling Production Ramp-up Market Launch Marketing and Support Production Cost, machines Production Overhead Model Values 15% per year 200000 units/year $260 per unit 40% -10% per year 5.0 SM over 1 year 4.0 SM over 12 year 2.0 SM over 1/2 year 10.0 SM over 1/2 year 5.0 $M/year $55 per unit 1.0 $M/year Interest rate: Quarterly sales profile: 7% / year 20% 25% 25% 30% Value in $M Year1 Year2 Year3 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 40k 50k 50k 60k 46k 57.5k 57.5k 69k 156 156 156 156 140 140 140 140 6.24 7.80 7.80 9.366.46 8.07 8.07 9.69 1.25 1.25 1.25 1.25 2.00 2.00 1.00 1.00 Unit / quarter $ / unit Total revenue Product development Equipment & tooling Product ramp- up Marketing & support Production Production overhead Total Cost Period cash flow NPV of this period 6.25 6.25 1.25 1.25 1.25 1.25 1.25 1.25 1.25 2.2 2.75 2.75 3.302.53 3.16 3.16 3.80 0.25 0.25 0.25 0.25 0.25 0.25 0.25 0.25 1.25 1.25 3.25 10.5 9.70 4.25 4.25 4.80 4.03 4.66 4.66 5.30 - 1.25 -1.25 -3.25 -10.5-3.46 3.55 3.55 4.56 2.43 3.41 3.41 4.39 -1.23 -1.21 -3.09 -9.80 -3.17 3.20 3.14 3.97 2.08 2.87 2.82 3.57