New Surge Protector

							                                        odular


                                        utlet


                                        xtender




Business Proposal
Presented by: The Michigan Power Quad
           Complaints About Products
 Tangles easily
 Inconvenient Placement
 Dangerous for babies/pets
     Fire Hazard
     Electrocution
     Strangulation
Product Description
             •Modular rigid device
                •Use of snap fits

             •Adjustable configurations
                •Angle
                •Length
                •# of outlets

             •Professional appearance

             •No exposed wired
            Technical Analysis

   Snap fit designed for an engagement force of 18 lbs and
    disengagement force of 9 lbs
      25.4mm long
      3mm tall
      15mm wide
      30° engagement angle


   Voltage drop for 20’ extension less than 1.25 V (~1%)

   Audio plug rated up to 15 Amp
               Injection Molding Process

   Use ABS plastic
      Resistant to many chemicals
      Great insulation
      Great strength and rigidity
      Tough
      Not greatly influenced by temperature


   Produce 60,000 units per year per machine
            Business Objective

   The introduction of the M.O.E. will simplify outlet
    demands and increase safety

   Target households in New York City and surrounding
    area…..why?
       High population density and small living conditions means
        greater use of outlet replicators/surge protectors


   We will sell our unit for $37.95
               Market Analysis
   Market the M.O.E. to NYC residents/businesses
       Total market size of 3 million households
       Large population density (residential)
       The “cubical office” is abundant (businesses)
                                                                       18


    Survey Results
                                                                                                       513670




                                               Market Percentage (%)
                                                                       16
                                                                      14                                           270280       270280
                                                                       12

       No. of outlets:    6                                           10
                                                                       8
                                                                                             162168


        Slenderness:       1”
                                                                       6
                                                                      4        120864
                                                                       2

       Modular section:   31”                                         0
                                                                            1            2             3        4            5
                                                                                                      Year




   Capture 60% of households within 5 years
                                      5 Year Market Share
                                      Forecast…
                        18


                                                             513670
                        16


                        14                                                270280       270280
Market Percentage (%)




                        12


                        10
                                                  162168
                             8


                             6


                             4       120864


                             2


                             0


                                 1            2              3        4            5



                                                           Year
             Assumptions Made…

Assuming the following results very conservative estimation…

        10% discount rate
        30% taxes on revenue
        Increase staffing with increasing production
        Neglect all depreciation benefits
        Have no salvage revenue from invested capital
        No initial cash in hand
        Competitive New Jersey salaries used
                             Capital and Personnel Resources

     Fixed Costs:                                          Variable Costs:
    1InitialLoan Payment:                   $788,677/yr      Material:                      $11.08/unit
    Warehouse:                              $750,000             ABS pellets
    Injection Molding                       $918,750             ¼” component cable
           Machine ($475,000)                                    Electrical wire
           Die     ($443,750)
                                                                  Solder
    Marketing                               $10,000/yr
                                                                  Assembly
    Plant Manager [1]                       $85,000/yr
                                                                  Packaging
    Team Leader [3]                         $55,000/yr
                                                                  Distribution
    Laborers [18]                           $30,000/yr
                                                              Taxes:                         30%/unit
    R & D Engineer [2]                      $55,000/yr
                                                              Intellectual Property Rights   5%/unit



14   year $2.5 million loan @ 10% interest
                            Breakeven Analysis
          $3,000,000.00
                                 Break-Even Point: before end of the 4th year
          $2,000,000.00



          $1,000,000.00



                  $0.00
                             0        1      2          3   4          5
NPV ($)




          ($1,000,000.00)



          ($2,000,000.00)                                       For entire project:
                                                                 NVP: $1.9 Million
          ($3,000,000.00)



          ($4,000,000.00)



          ($5,000,000.00)
                                                 Year
Questions…