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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 |
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