Mr. Peter supplies you the following particulars of his new project. Estimate the net working capital required by adding 10% for contingencies.

Estimated cost per unit manufactured in USD

Raw material	50
Direct labour	30
Overhead	20
Total Cost	100
Selling price per unit	150

Annual production 52000 units

Raw material in stock Average 4 weeks

W-I-P average 2 weeks

Finished goods in stock average 4 weeks

Credit allowed by suppliers average 2 weeks

Credit allowed to customer average 8 weeks

Lag in payment of wages and overheads average 2 weeks

Cash balance to be maintained 20,000