4) PV of Production and Sale Cash Flow Timeline - A financially distressed firm must pay cash for its raw materials. It pays $40 per item at the time of order. The parts are received 30 days after ordered. Five days after they are received, they are taken out of inventory and used in the manufacturing process. There are additional processing costs of $6.50 per item at the point in time when it manufactures its finished products. On average, it sells each finished product 95 days after manufacturing takes place, and also sells on a cash basis. A. The cash flow time line is provided: Cash Flow Timeline Order Raw Receive Processing Costs Materials Parts Manufacture Product 0 30 35 130 Days Sell on Cash Basis ($40) ($6.50) $? B. Determine the sales price for finished goods to break even on a NPV basis (hint set the NPV equation = 0). Use discount rate of 10% Cash is collected on day 130 (30+5 +95 = 130) 6.50 *(1+. 10) / 365) -40 x (1+1 130 / 365