Task #3

year1 year2 year3 year4 year5 Average Price:

Lip Balm 12000 16000 18000 21000 25000 $13
Eye Cream 0 0 5000 7000 10000 $14
Skin Cream 0 0 0 4000 5000 $18
CM
Lip Balm $156,000 $208,000 $234,000 $273,000 $325,000
Eye Cream $0 $0 $70,000 $98,000 $140,000
Skin Cream $0 $0 $0 $72,000 $90,000
$156,000 $208,000 $304,000 $443,000 $555,000
Expense
Market Research -15000
Branding Expert -60000 -60000 -60000 -60000 -60000
Market Investment -45000 -45000 -45000 -45000 -45000
Before Tax $36,000 $103,000 $199,000 $338,000 $450,000
After Tax 28800 82400 159200 270400 $360,000

Discounted Rate 0.89 0.8 0.71 0.64 0.57

NPV $582,840
Marke Investment at -200000
382840
Average Price: