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Consider a slime business where you will sell 300 units of slime annually at a price...

Consider a slime business where you will sell 300 units of slime annually at a price of $5 each for 3 years, at which point you will be a teenager and no longer interested in slime. It costs $2.5 to produce each unit. Your only equipment is a $1,200 mixer, which you depreciate straight line to 0 over 3 years. You believe you can sell the used mixer for $100 in three years. You need $250 in start-up inventory of glue and containers. Your tax rate is 15%. What are the cash flows from this project? If your required rate of return is 12%, can you get your parents to invest in your business? Show the project cash flows, the NPV and IRR.

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