Atwood Company has an opportunity to produce and sell a revolutionary new smoke detector for homes. To determine whether this would be a profitable venture, the company has gathered the following data on probable costs and market potential: New equipment would have to be acquired to produce the smoke detector. The equipment would cost $100,000 and be usable for 5 years. After 5 years, it would have a salvage value equal to 10% of the original cost. An extensive marketing study projects sales in units over the next 5 years as follows: The smoke detectors would sell for $45 each; variable costs for production, administrative and sales would be $15 per unit. To gain entry into the market, the company would have to advertise heavily in the early years sales. The advertising program follows: Other fixed costs for salaries, insurance, and maintenance would total $100,000 per year. The company's required rate of return is 10%. Required: Using net present value analysis, would you recommend that Atwood Company accept smoke detector as a new product