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You plan to start a business to produce and sell custom kitchen cabinets. The targeted price for each order of cabinets is $10,000. You estimate that you will receive orders for cabinets for eight kitchens in each of the first two months, nine kitchens in the third month, and ten kitchens in the fourth month. The cost of the equipment necessary to produce the cabinets is $105,000. You expect the cost of raw materials to be $3,000 per order. In addition, you expect monthly gross wages and payroll to be $27,000, rent to be order. In addition, you expect monthly gross wages and payroll to be $27,000, rent to be $10,000 in the first month, but to remain constant at $1,000 per month during the following three months. How much will you have to initially invest ensure that you have a cash balance of $10,000 at the beginning of the second month? If you invest this amount, what will be your cash balance at the end of the fourth month?
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