After spending a year and

$50,000,

you finally have the design of your new product ready. In order to start production, you will need

$30,000

in raw materials and you will also need to use some existing equipment that you've fully depreciated, but which has a market value of

$100,000.

Your colleague notes that the new product could represent

10%

of the company's overall sales and that

10%

of overhead is

$60,000.

Your tax rate is

25%.

As you start your analysis of the product, what should be your initial incremental free cash flow?