Bob has just completed the development of a better face shield for health workers. The new product is

expected to produce annual revenues of $140,000. Bob requires an investment in an advanced 3D Printer

costing $24,000. The project has an expected life of 5 years based upon the development and dessimination of

a vaccine for corronavirus. The 3D printer will have zero salvage value as the market for 3D printers will be

flooded as demand plummets for face shields. In order to produce the the face shields Bob must maintain a

large inventory of plastic pelletts. Therefore, working capital is expected to increase by $30,000 which Bob will

recover at the end of the products life cycle. Annual operating expenses are estimated at $130,000. The

required rate of return is 12% since Bob could have invested in the stockmarket.