(Solved): 1. You are working with a consumer prodact conpuny od estimating the stpected cash flows from a new ...

1. You are working with a consumer prodact conpuny od estimating the stpected cash flows from a new brand of toothpaste that they plan to introdace. Frim your priot experiences with earlier introdactions of tizular probsetr, you have collected the following information. - You are Iikely lo nell 8 million tubes in the first yas that you introduce the projoct. 10 million in the second yead, 12 malliod intit the thired your and beck down to 8 millise in the fourth year. At ithe end of the focth yrat, you wall have bi replace the brand with a acw one. - Yoa price toothpuate at 53 a tube currently, and expet to incritie pricen af 5 . year for the neat 4 years. - You will have to advertise most heavily in the fint year. Ipendiag 510 milliea on advertining, but you expect this to drop to 56 minioa in yout \( 2.54 \) millimn in year 3 and 52 million in yoar 4 . - Your costs associated with procfocing the loothpaite art \( 50.50 \) a thibe carreatly, and you expect thet to increase at \( 5 \% \) a year for the nictl 4 yearn. - Yos will have to ittveit 510 million in new equigesent at an old plant fe create the mamifacturing facilities and you expect to depteciats the experediture thaight lise over the 4 years down to oeto. - You have a 40pt tax rate - The firm's weighted average cont of capital at 125;. Thin it the requind retura on the project.