Sales Projections

US Sales
UK, Ireland, Europe Sales
Japan, New Zealand, Australia Sales
Canada Sales
Units Sold
Units sold out of Artists Car
Total Projected Sales
Inventory Loss
Weighted Average Cost of Capital

5000
2000
1000
500
8500
1500
10000
30%
12%

Cost of Recording
Percentage Units Sold in Year One
Percentage Units Sold in Year Two
Percentage Units Sold in Year Three

75%
20%
5%

Distribution Costs
US Wholesale Price
Distribution Fee
Profit in US
Inventory Overage

11.45
21%
9.05
30%
Marketing Costs

Print advertising
Posters and photos
E-card mailings
Independent radio promoter
Retail placement
Total marketing cost
CD mail-out units
Cost per mail-out unit per unit
Postage and collateral per unit
Total cost for CD mail-out
Other Costs
Jewel Case, Shrink Wrap, and Label
Booklet and other CD Inserts
Mechanical Royalties
Recording Artist Royalties - Purchasing

$3,000
500
1,000
2,500
5,000
$12,000
2,000
$0.50
$2.00
$5,000

$0.70
$0.20
$0.85
$1.45

Recording Artist Royalties - Franchising

Cost of Goods Sold

$1.75
$0.90

Units
Units
Units
Units
Units

Sold
Sold
Sold
Sold
Sold

in
in
in
in
in

US
UK, Ireland and Europe
Japan, New Zealand and Australia
Canada
Roscommons Van

Totals
Recoupables
Production Costs
Marketing and Promotion (50%)
Advance
TOTAL
Assets
Inventory (including 30% overage)
Recoupables

5000
2000
1000
500
1500
10000

$20,000.00
$6,000.00
$$26,000.00

30%

Profit Per Unit

in Local
Profit Per Unit Units Sold in Profit in Year Units Sold in
Currency
in USD$
Year One
One
Year Two
$9.05
$9.05
3750 $33,920.63
1000
$7.00
$8.57
1500 $12,852.00
400
$6.50
$6.50
750
$4,875.00
200
$7.00
$7.00
375
$2,625.00
100
$6.00
$6.00
1125
$6,750.00
300
7500

$61,022.63

2000

$9,045.50
$3,427.20
$1,300.00
$700.00
$1,800.00
$16,272.70

$500.00
$6,000.00
$3,000.00
$9,500.00

$8,471.25
$26,000.00

$3,980.25
$16,756.25

$2,745.00
$14,291.25

$2,295.00
$13,675.00
$15,970.00

Year Three
250
100
50
25
75

$2,261.38
$856.80
$325.00
$175.00
$450.00

500

$4,068.18

$8,471.25
$9,500.00

$3,980.25
$-

$2,745.00
$-

$2,295.00
$$2,295.00

Year 0
$$$$-

Total Sales
Cost of Goods Sold
Mechanical Royalties
Recording-Artist Royalties

Recoupables not Recovered

Marketing (Not Recoupable)
Loss on Inventory
Advance

$$11,000.00
$$-

Taxable Income
Taxes
Net Profit after Taxes

$(11,000.00)
$4,400.00
$(6,600.00)

40%

Change in Inventory
Change in Recoupables

$(8,471.25)
$(26,000.00)

Free Cash Flow

$(41,071.25)

NPV
IRR

Err:504
29%

Year 1
$61,022.63
$6,750.00
$2,709.38
$9,243.75

$$$$-

Year 2
$16,272.70
$1,800.00
$722.50
$2,465.00

$$$$-

Year 3
$4,068.18
$450.00
$180.63
$616.25

$13,675.00
$$2,295.00
$-

$42,319.50
$16,927.80
$25,391.70

$11,285.20
$4,514.08
$6,771.12

$(13,148.70)
$5,259.48
$(7,889.22)

$4,491.00
$9,243.75

$1,235.25
$2,465.00

$450.00
$616.25

$39,126.45

$10,471.37

$9,147.03

$-

Year 0
$$$$-

$$11,000.00
$$3,000.00

$-

Year 1
$61,022.63
$6,750.00
$5,418.75
$11,156.25

$$$$-

Year 2
$16,272.70
$1,800.00
$1,445.00
$2,975.00

$$$$-

Year 3
$4,068.18
$450.00
$361.25
$743.75

$$$2,295.00
$-

$(14,000.00)
$5,600.00
$(8,400.00)

$37,697.63
$15,079.05
$22,618.58

$10,052.70
$4,021.08
$6,031.62

$218.18
$87.27
$130.91

$(8,471.25)
$(9,500.00)

$4,491.00
$9,500.00

$1,235.25
$-

$450.00
$-

$(26,371.25)

$36,609.58

$7,266.87

$2,875.91

Err:504
60%