| | Development Cycle | | | | | Product Life Cycle |
| Timeline: | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 |
| Development Costs |
| Equipment/Tooling |
| Engineering Budget |
| Total Development Costs |
| Revenue(after dealer disc.) |
| Standard |
| Luxury |
| Total Revenue (after dealer disc.) |
| Expenses |
| Variable Costs |
| Materials |
| Standard |
| Luxury |
| Total Material Costs |
| Logistics and Warranty |
| All Cars |
| Total Logistics and Warranty Costs |
| Manufacturing Costs |
| All Cars |
| Total Manufacturing Costs |
| Total Variable Costs |
| Fixed Costs |
| Marketing and Advertising |
| Total Fixed Costs |
| Total Expenses |
| Revenue less Expenses (FCF) |
| Discount Rate: |
| Net Present Value of Project: |
| ASSUMPTIONS |
| manufacturing equipment |
| Timing |
| Engineering Budget |
| Timing |
| Total Sedan market |
| Expected market share (%) |
| Expected market share (cars) |
| Standard Car |
| Percent of total sales |
| number of cars |
| selling price (MSRP) |
| reduction in sale price per year |
| Material cost |
| reduction in costs per year |
| dealer discount |
| Luxury Car |
| Percent of total sales |
| number of cars |
| selling price (MSRP) |
| reduction in sale price per year |
| Material cost |
| reduction in costs per year |
| dealer discount |
| All Cars |
| logistics and warranty cost |
| Manufacturing Cost |
| reduction in costs per year |
| marketing expenses |
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GMCaseStudyblank2.xlsx
