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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%
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 119000 119000 119000 119000 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% 27% 27% 27% 27% 27% Discount Rate 7% 7% 7% 7% 7% 7% New Investment PP&E Cap/Pump molds 1590000 Change parts 260000 Pump assembly 570000 Depreciable life(Years) 6
| 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 | 119000 | 119000 | 119000 | 119000 | 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% | 27% | 27% | 27% | 27% | 27% | |
| Discount Rate | 7% | 7% | 7% | 7% | 7% | 7% | |
| New Investment | |||||||
| PP&E | |||||||
| Cap/Pump molds | 1590000 | ||||||
| Change parts | 260000 | ||||||
| Pump assembly | 570000 | ||||||
| Depreciable life(Years) | 6 |
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Financial Reporting Financial Statement Analysis and Valuation
Authors: Clyde P. Stickney
6th edition
324302959, 978-0324302967, 324302967, 978-0324302950
