Judy has just completed the development of a better face shield for health workers. The new product is expected to produce annual revenues of $150,000. Judy requires an investment in an advanced 3D Printer costing $9000.34 The project has an expected life of 5 years based upon the development and dissemination of a vaccine for coronavirus. The 3D printer will have $3000 salvage value as the market for 3D printers will be flooded as demand plummets for face shields. In order to produce the face shields Judy must maintain a large inventory of plastic pellets. Therefore, working capital is expected to increase by $14,999.00 However, Judy will only recover $1278 of working capital at the end of the products life cycle. Annual operating expenses are estimated at $145,000. The required rate of return is 6%.

Calculate the Net Present Value

Prepare a schedule of projected annual cash flows