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Task # Glo expects the new men's line to be a success. It plans to introduce products one at a time and is projecting
Task # Glo expects the new men's line to be a success. It plans to introduce products one at a time and is projecting the following sales volumes over the first five years: Lip balm Eye cream Year 1 12,000 Year 2 16,000 Year 3 Year 4 Year 5 18,000 21,000 25,000 5,000 7,000 10,000 4,000 5,000 Skin cream The lip balm will sell for $18, the eye cream for $20, and the skin cream for $25. The costs of goods sold for the lip, eye, and skin products are $5, $6, and $7, respectively. In addition to the social media influencer costs, Glo will incur about $15,000 for market research in the first year. It also plans to hire, in a permanent position, a men's branding expert at a rate of $60,000 per year. Calculate the NPV of the new product line over a five-year period, assuming the facility expansion and new machinery cash flows are non-differential to launching the men's line.
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