Revenues generated by a new fad product are forecast as follows:

Year	Revenues
1	$60,000
2	45,000
3	30,000
4	10,000
Thereafter	0

Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment.

a.	What is the initial investment in the product? Remember working capital.

Initial investment

$

b.	If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm