respond to: After reviewing the Chart of Assumptions, I would recommend that New Balance go ahead with the Sneaker 2013 project. The projected sales revenues are high enough to make up for the $50 million in sales cannibalization of their other shoe lines that will occur during the first two years of the six-year project. Also, building a new factory is required to move forward with the project at a cost of $150 million. The cost per year to obtain a celebrity endorsement is minimal when compared to projected sales revenue. The endorsement has the potential to create value for New Balance for many years into the future depending on the success of the athlete and the success of the new shoe line