Kraemer Company is launching a new product. The following information relates to the launch:
1) 4 year project life					8) Sales for first year			$ 200,000
2) New equipment cost			$ (200,000)		9) Sales increase per year			5%
3) Equipment ship & install cost			$ (35,000)		10) Operating cost:			$ (120,000)
4) Related start up cost			$ (5,000)		as a percent of sales			60%
5) Inventory increase			$ 25,000		11) Depreciation expense - SL			$ (60,000)
6) Accounts Payable increase			$ 5,000		12) Tax rate			40%
7) Equip. salvage value after tax			$ 15,000		13) Hurdle Rate			10%
Cash Flow Framework:
Year			0	1	2	3	4
Investments:
Total
Operations:
Total
Terminal: