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Request: Add formula text for outcomes on excel Create a spreadsheet to model the following: 1. [20pts] You are the product manager of a toy

Request: Add formula text for outcomes on excel
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Create a spreadsheet to model the following: 1. [20pts] You are the product manager of a toy company thinking of launching a new product, the indoc fort building kit :. Your critics say these are just overpriced cardboard boxes, but you know this produc will be successful and you seek out initial investors. In year 0 (right now), you will incur a cost of $4 million to build and staff a production factory. In year 1, you expect to sell 80,000 kits at a unit price of $25 each. The price of $25 will remain unchanged through years 1 to 5 . Unit sales are expected to grow by the same percentage (g) each year. During years 1 to 5 , you incur two types of costs: variable costs and fixed SG\&A (selling. general, and administrative) costs. Each year, variable costs equal half of revenue. During year 1 , SG\&A costs equal 40% of revenue. This percentage is assumed to drop 2% per year. so during year 2, SG\&A costs will equal 38% of revenue, and so on. Your goal is to have profits for years 0 to 5 sum to 0 (ignoring the time value of money). This will ensure that the $4M investment in year 0 is paid back by the end of year 5 . What annual percentage growth rate g is needed to pay back the plant cost by the end of year 5 ? Create a spreadsheet to model the following: 1. [20pts] You are the product manager of a toy company thinking of launching a new product, the indoc fort building kit :. Your critics say these are just overpriced cardboard boxes, but you know this produc will be successful and you seek out initial investors. In year 0 (right now), you will incur a cost of $4 million to build and staff a production factory. In year 1, you expect to sell 80,000 kits at a unit price of $25 each. The price of $25 will remain unchanged through years 1 to 5 . Unit sales are expected to grow by the same percentage (g) each year. During years 1 to 5 , you incur two types of costs: variable costs and fixed SG\&A (selling. general, and administrative) costs. Each year, variable costs equal half of revenue. During year 1 , SG\&A costs equal 40% of revenue. This percentage is assumed to drop 2% per year. so during year 2, SG\&A costs will equal 38% of revenue, and so on. Your goal is to have profits for years 0 to 5 sum to 0 (ignoring the time value of money). This will ensure that the $4M investment in year 0 is paid back by the end of year 5 . What annual percentage growth rate g is needed to pay back the plant cost by the end of year 5

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