sales growth 0.

2
set-up cost 1,700,000.00
initial revenue 4,730,000.00
indirect costs 692,000.00
product contribution 0.4
discount rate 0.178

0 1 2 3
total sales (£) - 4,730,000.00 5,676,000.00 6,811,200.00
cash outflows (£)
variable costs - 2,838,000.00 3,405,600.00 4,086,720.00
material
workforce
energy used
advertising - 100,000.00 100,000.00 100,000.00
indirect operation costs - 240,000.00 240,000.00 240,000.00
indirect production costs - 352,000.00 352,000.00 352,000.00
TOTAL OPERATING COSTS - 3,530,000.00 4,097,600.00 4,778,720.00
OPERATING NET CASH FLOW (£) - 1,200,000.00 1,578,400.00 2,032,480.00
start-up costs (£) 1,700,000.00 - - -
NET CASH FLOW (£) - 1,700,000.00 1,200,000.00 1,578,400.00 2,032,480.00
discount factor 1.00 0.85 0.72 0.61
PV (£) - 1,700,000.00 1,018,675.72 1,137,434.75 1,243,341.44 1,699,451.91
total PV
 Valentin Borisavljevic 2140173

- 548.09
NPV
market share 0.042
market size per category 0.02 0.14 0.34 0.34 0.16
total market size 673,000,000.00
profit margin 0.05

category 1 category 2 category 3 category 4 category 5 totals

part of market 0.02 0.14 0.34 0.34 0.16
market size per category 13,460,000.00 94,220,000.00 228,820,000.00 228,820,000.00 107,680,000.00 673,000,000.00
revenue 565,320.00 3,957,240.00 9,610,440.00 9,610,440.00 4,522,560.00 28,266,000.00
profit 28,266.00 197,862.00 480,522.00 480,522.00 226,128.00 1,413,300.00

UK elasticity international
price elasticity -2.4 -2
prices 500 550

category 1 category 2
p 500 550 p 500 550
fraction p change 0 0.1 fraction p change 0 0.1
q 1,130.64 859.29 q 7,914.48 6,015.00
revenue 565,320.00 472,607.52 revenue 3,957,240.00 3,308,252.64
profit 28,266.00 23,630.38 profit 197,862.00 165,412.63

category 4 category 5
p 500 550 p 500 550
fraction p change 0 0.1 fraction p change 0 0.1
q 19,220.88 14,607.87 q 9,045.12 6,874.29
revenue 9,610,440.00 8,034,327.84 revenue 4,522,560.00 3,780,860.16
profit 480,522.00 401,716.39 profit 226,128.00 189,043.01
 category 3
p 500 550
fraction p change 0 0.1
q 19,220.88 14,607.87
revenue 9,610,440.00 8,034,327.84
profit 480,522.00 401,716.39

category 1 category 2
p 500 550 p 500 550
fraction p change 0 0.1 fraction p change 0 0.1
q 2,261.28 1,809.02 q 15,828.96 12,663.17
revenue 1,130,640.00 994,963.20 revenue 7,914,480.00 6,964,742.40
profit 56,532.00 49,748.16 profit 395,724.00 348,237.12

category 4 category 5
p 500 550 p 500 550
fraction p change 0 0.1 fraction p change 0 0.1
q 38,441.76 30,753.41 q 18,090.24 14,472.19
revenue 19,220,880.00 16,914,374.40 revenue 9,045,120.00 7,959,705.60
profit 961,044.00 845,718.72 profit 452,256.00 397,985.28

category 3
p 500 550
fraction p change 0 0.1
q 38,441.76 30,753.41
revenue 19,220,880.00 16,914,374.40
profit 961,044.00 845,718.72
Valentin Borisavljevic 2140173