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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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