Assume the following: the sales price to consumers is $150 the retailers markup is 50%

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Question:

Assume the following:

• the sales price to consumers is $150

• the retailers’ markup is 50%

• Whirlpool’s after tax profit margin is 4%

• The hurdle rate is 20%

• Populations are as follows: Brazil 182 million, China 1.286 billion, and India 1.049 billion.

• Family size are as follows: Brazil 4.01, China 3.70, and India 4.91.

• The two-year increase in market penetration is expected to be 20%. To simply your analysis, you decide to calculate the overall two-year increase in sales and allocate 50% to each year 1 and 2. For years 3, 4, and 5 you expect sales to increase by 10% per year.

Create a spreadsheet to calculate the expected 5-year net present value. Be prepared to share your analysis and defend your core assumptions.