oject B involves an expansion of a current product line of high-tech recycled lithium-ion batteries class B with a new range made from recycled household batteries. Cash flow estimation is not yet complete. STE forecasts that the new range will be made available for only 5 years. So far, the company has spent $450,000 on background product research on the product and this research forms the basis of the following estimates. First year sales are forecast to be 15,500 units and this is predicted to increase by 25% in each of the second and third years. However, demand is expected to fall after that, leading to a decrease by 20% in each of the final two years. First year selling price will be set at $2,300 per unit and will be increased each year by 7%. It is expected that Project B will bring in more and different customers and slightly increase sales of the company's other products. However, the expected net effect on existing products will be a reduction of $10 million in their combined pre-tax profit in year one, and the net effect will decrease by 50% per year of Project B's life after that. The cost of