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Please help me find the Cash Flow,NPV and IRR Assumptions Advertising Increase Per Year $2,000,000 Capital Expenditures $4,000,000 One-Time Development Expenses $1,500,000 5-Year Depreciation Schedule
Please help me find the Cash Flow,NPV and IRR
Assumptions Advertising Increase Per Year $2,000,000 Capital Expenditures $4,000,000 One-Time Development Expenses $1,500,000 5-Year Depreciation Schedule Discount Rate 8% Tax 40% Base Case Cannibalization (Basic) 15%% Base Case Cannibalization (Premium) |(50% + 60%/2) = 55% Base Case Cannibalization (Advanced)|(65% + 75% /2) = 70% Base Case Marketing Per Year 6,000,000 Premium Product Basic Product Exhibit 6 Gross Profit Comparison Advanced Seal Per unit revenue and costs Revenue $22 Cost of goods sold expenses - Gross profit $10 $18 $13 S12 S7 $11 $7 Calculate the NPV and IRR from the DCF for Option 1 on Excel Selling price of Advanced Seal Crest Whitestrips: $22 per unit Cost per unit: $12 Sales volume: 2 million units per year Incremental advertising: $2 million Advertising budget per year: $6 million Cannibalization from existing P&G sales: Advanced = 70%, Premium = 50-60%, Basic = 15% Step by Step Solution
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