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Given the following: R&D expense from Matthew $4,000 Sale product for $30 per package Sales projection 400 packages per year Current raw expense materials is
Given the following:
- R&D expense from Matthew $4,000
- Sale product for $30 per package
- Sales projection 400 packages per year
- Current raw expense materials is $7.50 per package
- 10% discounts from suppliers on materials
- Shipping and Handling expenses:
- Packing cost $6
- Labeling cost $2
- Shipping cost $5
- Hold inventory for 60 days
From the above information, Matthews time which consists of $4,000 of his salary is not relevant as it is considered a sunk cost. The time/money was already used regardless of if he moves forward or not.
What is the net cash flow?
Total Required Investment?
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