The ET students at OSU are launching a business manufacturing homework-completing robots. There are roughly $253.22 in material costs for each robot (including waste), and the hope is to sell them at the bargain price of $399.99 each. Since they're using the facilities in the ET department, they aren't planning to purchase equipment until after they graduate (2 years from now). They expect to sell 23 robots each quarter until they graduate. Then, they'll invest $23,456.78 in equipment and facilities to grow the business on their own. Once they're running this full-time as a business they expect to be able to produce and sell at higher volumes, and the ongoing expenses (in addition to the material costs) for this phase of their business will be $1,234.56 per month.

a) How much will they earn in profits over the next eight quarter while they are still students?

b) Draw the cash flow diagram for the next eight quarters while they are still students?

c) Staring with the period after they graduate, how many robots would they need to sell each quarter to break even within the first year?

d) Starting with the period after they graduate, how many robots would they need to sell each quarter to break even within the first two years?

e) Why are these numbers different?

f) Draw the cash flow diagram for part d