3. What is the value that would be created by a reformulation? Complete and explain the table below.

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Incremental Research 35 35

Incremental Special Marketing 25 25 25 25 25

Growth 2% -50% 2% 2% 2% 2% 2% 2% 2% 2% -50% -50% -50%

New Sales 214.77 219.07 109.5 111.69 113.92 116.20 118.53 120.90 123.31 125.78 128.3 64.15 32.07 16.04

Marginal Sales (New Sales Original Sales 0.00 4.3 -109.57 2.19 2.23 2.28 2.33 2.37 2.41 2.47 2.52 -64.15 -32.08 -16.03

New Cost of Sales 49.40

Marginal Cost of Sales 0.00

New Direct Marketing 57.99

Old Direct Marketing 57.99 59.15 29.57 14.79 7.39 0 0 0 0 0 0 0 0 0

Marginal Direct Marketing 0.00

New G&A 8.59

Old G&A 8.59 8.76 4.38 2.19 1.10 0 0 0 0 0 0 0 0 0

Marginal G&A 0.00

Marginal Cash Flow pre Tax (60.00)

Marginal NOPAT (40.80) NPV