You secure a team whos wants to help you develop, source, test, and launch the product. You spend the next 2 years getting to launch by spending $35,000 in your first year and $40,000 in year 2 prior to launch.

Your forecasted sales:

Year 1(post launch): 50units

Year 2: 150

Year 3: 200

Year 4: 250

Year 5: 250

Your price point is $700 direct to Consumer, Amazon takes 16% of the Gross sale as a fee leaving you with a Net Sale of $588 per unit

Your on-going cost to run the business starting in the launch year is the following: Year 1: 35% of Net Revenue, Year 2 through 5: 30% of Net Revenue.

What COGS, and therefore net profit%, (to the nearest 10thof a $ and %)do you need to make this a positive NPV at 8% Cost of Capital (interest rate)?

Please show your work in excel. Thank you!