You plan to manufacture a Product X in Cote d'lvoire $($one of the poorest nations in the world$)$: $5,000$ units in $1^{st}$ year, $7,000$ units in $2^{nd}$ year, and $9,000$ in $3^{rd}$ year. Fixed costs $($e$.$g$.$ rent, insurance, salaries...$)$ are $$70,000$ in $1^{st}$ year, $$96,000$ in $2^{nd}$ year, and $$110,000$ in $3^{rd}$ year. You plan to purchase equipment to manufacture Product $xs$ at $$30,000($at Year zero$),$ with the life of the equipment of $3$ years. Apply the straight$-$line depreciation method.

Product $x$ will be sold at $$140($no change in $3$ years$)$ each in over $12$ African countries. Cost of Goods Sold $($e$.$g$.$ raw materials, packaging, direct labor$)$ of each Product X is $$124($no change in $3$ years$).$ NGOs help you to distribute GPs to customers. The tax rate is $30\%.$ There will be no tax if EBIT is $0($in our case$).$ The change in net working capital in Year zero is $-$$$20,000$ and $$20,000$ in Year $3.$

Assume the expected rate of return is $5\%.$

What is the Net Present Value?

$$18,303$

$$16,329$

$$12,831$

$$14,210$