Analysis
Assumptions - Redesign			Launch	Proj Yr 1	Proj Yr 2	Proj Yr 3	Proj Yr 4	Proj Yr 5
Operating assumptions
	Sales growth
		Category growth rate				4%	4%	4%	4%	4%
		Incremental growth rate				2.0%	1.0%	0.50%	0.0%	0.0%
		Historic/Base sales			139,500,000
	Gross margin				69%	69%	69%	69%	69%
		Cost reductions since new design is less expensive			119,000	119,000	119,000	119,000	119,000
	Development
		Marketing and R&D				700,000
	Start-up expenses
		Partial case returns net of salvage value			1,800,000
		Label conversion costs				700,000
		Freight charge/launch year expenses			400,000
		Other miscellaneous				300,000
	Tax rate				27%
	Discount rate			7%
New investment
	PP&E
		Cap/Pump molds			1,590,000
		Change parts			260,000
		Pump assembly			570,000
	Depreciable life (years)			6
					Start up	Proj Yr 1	Proj Yr 2	Proj Yr 3	Proj Yr 4	Proj Yr 5
	Initial investment (negative number)			(2,420,000)
		Incremental sales
		Incremental COGS
		Incremental gross profit				-	-	-	-	-
		Depreciation				403,414	403,414	403,414	403,414	403,414
		Marketing and R&D				700,000	0.00	0.00	0.00	0.00
		Partial case returns net of salvage value			1,800,000	0.00	0.00	0.00	0.00
		Label conversion costs				700,000	0.00	0.00	0.00	0.00
		Freight charge/launch year expenses			400,000	0.00	0.00	0.00	0.00
		Other miscellaneous				300,000	0.00	0.00	0.00	0.00
		Incremental expenses				4,303,414	403,414	403,414	403,414	403,414
		Cost reductions from new design				119,000	119,000	119,000	119,000	119,000
		Incremental operating profit				(4,184,414)	(284,414)	(284,414)	(284,414)	(284,414)
		Depreciation				403414	403414	403414	403414	403414
		Project cash flows			-2420000	-3781000	119000	119000	119000	119000
		NPV	($5,212,090.02)
		IRR	#NUM!