Launch	Proj Yr 1	Proj Yr 2	Proj Yr 3	Proj Yr 4	Proj Yr 5
Operating Assumptions
	Sales Growth
	Category growth rate	4%	4%	4%	4%	4%	4%
	Incremental growth rate		2%	1%	0.50%	0%	0%
	Historic/Base sales	139500000
	Gross Margin	69%
	Cost reductions since new design is less expensive	119000
	Development
	Marketing and R&D	700000
	Start-up expenses
	Partial case returns net of salvage value	1800000
	Label conversion costs	700000
	Freight charge/Launch year expenses	400000
	Other miscellaneous	300000
	Tax Rate	27%
	Discount Rate	7%
New Investment
	PP&E
	Cap/Pump molds	1590000
	Change parts	260000
	Pump assembly	570000
	Depreciable life(Years)	6