Question: Are the negative numbers good or bad in the pretax and cumulative impact ? B D E 4 F what will this scenario do to

Are the negative numbers good or bad in the

Are the negative numbers good or bad in the pretax and cumulative impact ?

B D E 4 F what will this scenario do to the product's Neutral 1 2 3 Year 1 Year 2 Year 3 Year 4 Year 5 4 Capital Expenditures None 5 6 Total Capital Expenditures $0 $0 $0 $0 $0 7 8 9 10 11 Gross Margin Impact $0 $0 $0 $0 $0 12 13 Acquisition Expenses Cost of imported items Cost to ship imported items Replacement stock for defects Cost to ship replacement items Total Acquisition Expenses 14 $535,600 $82,400 $13,390 $24,720 $656,110 $535,600 $82,400 $13,390 $24,720 $656,110 $535,600 $82,400 $13,390 $24.720 $656,110 $535,600 $82,400 $13,390 $24,720 $656,110 $535,600 $82,400 $13,390 $24,720 $656,110 15 16 17 18 19 20 New Expenses Depreciation Production Labor Additional Warehouse Space Customer Service staff Total New Expenses 21 22 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 $15,600 23 24 25 26 Pre-Tax Income Impact Cumulative Pre-Tax Income Impact -$671,710 -$671,710 $671,710 -$1,343,420 $671,710 -$2,015, 130 -$671,710 -$2,686,840 -$671,710 -$3,358,550 27 28 Cash Flow Impact Cumulative Cash Flowlmpact #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! 29 30

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