Research and development $10,000,000

Test marketing cost $5,000,000

Initial equipment cost $160,000,000

Equipment salvage value $65,000,000

OEM market:

Price $41

Variable cost $29

Automobile production 6,200,000

Growth rate2.50%

Market share11.00%

Replacement market:

Price $62

Variable cost

Market sales 32,000,000

Growth rate2.00%

Market share8.00%

Price increase above inflation 1%

VC increase above inflation1%

Marketing and general costs $43,000,000

Tax rate 40.00%

Inflation rate 3.25%

Required return 13.40%

Initial NWC $9,000,000

NWC percentage of sales 15%

Year 1 depreciation14.29%

Year 2 depreciation24.49%

Year 3 depreciation17.49%

Year 4 depreciation12.49%

Nominal price increase

Nominal VC increase

Year 0Year 1Year 2

OEM:

Automobiles sold 6,200,000 6,355,000

Tires for automobiles sold 24,800,000 25,420,000

SuperTread tires sold 2,728,000 2,796,200

Price$41.00 $42.33

Replacement market:

Total tires sold in market 32,000,000 32,640,000

SuperTread tires sold 2,560,000 2,611,200

Price $62.00 $64.02

I need to find these :

Revenue:

OEM market

Replacement market

Total

Variable costs:

OEM market

Replacement market

Total