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Class 

example
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Development cost $        40,000 $    40,000 $      40,000
Tooling investment $    100,000 $    100,000
Testing cost  $    25,000 $    25,000 $    25,000 $      25,000
Ramp up cost $      50,000
Marketing and support cost $    270,000 $    20,000 $    20,000 $    20,000 $    20,000 $    20,000 $    20,000 $    20,000
Manufacturing cost $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000
Manufacturing volume       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000
Cost per part $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6 $              6

Revenue $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000 $  600,000
Sales Volume       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000       50,000
Price $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12 $            12
Quarter 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27
Total $      (40,000) $  (40,000) $  (140,000) $  (100,000) $  (25,000) $  (25,000) $  (25,000) $  (345,000) $  280,000 $  280,000 $  280,000 $  280,000 $  280,000 $  280,000 $  280,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000 $  300,000
PV @ 10% $      (40,000) $  (39,024) $  (133,254) $     (92,860) $  (22,649) $  (22,096) $  (21,557) $  (290,237) $  229,809 $  224,204 $  218,736 $  213,401 $  208,196 $  203,118 $  198,164 $  207,140 $  202,087 $  197,159 $  192,350 $  187,658 $  183,081 $  178,616 $  174,259 $  170,009 $  165,863 $  161,817 $  157,870 $  154,020
10% 2.50%
NPV $  3,165,878
Built in Function $  3,165,878

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