Question: My side that i did this wrong Exam type question % Required Rate of Return Face Shield Project at 8 % POTD# 3 Bridgette and

My side that i did this wrong
Exam type question % Required Rate of Return Face Shield Project at 8% POTD#3
Bridgette and Lisa just completed the development of a better face shield for health workers. The new product is expected to produce annual revenues of $200,000.00 Bridgette and Lisa require an investment in an advanced 3D Printer costing $200,000.00 The project has an expected life of 5 years based upon the development and dissemination of a vaccine for coronavirus. The 3D printer will have $100.00 salvage value as the market for 3D printers will be flooded as demand plummets for face shields. In order to produce the face shields Bridgette and Lisa must maintain a large inventory of plastic pellets. Therefore, working capital is expected to increase by $200,000.00 However, Bridgette and Lisa will not recover any of working capital at the end of the products life cycle. Annual operating expenses are estimated at $101,000.00 The required rate of return is 8%.
Calculate the Net Present Value
Prepare a schedule of projected annual cash flows
CASHFLOW WORKSHEET
Year Zero (Add Two Cash Outflows)
Buy Equipment
Increase Working Capital Investment (buy inventory)
200,000
101,000
=99,000
Year One Revenue-Expense
Year Two Revenue-Expense
Year Three Revenue-Expense
Year Four Revenue-Expense
\table[[200,000,-400,000
 My side that i did this wrong Exam type question %

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