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can someone help im having trouble, 1, 2A, 2B Matheson Electronics has just developed a new electronic device that it beloves w have broed market
can someone help im having trouble, 1, 2A, 2B
Matheson Electronics has just developed a new electronic device that it beloves w have broed market appeal. The company has performed marketing and cost studies that revesled the following information: 4. New equipment would have to be ocquled to produce the covice. The equipment would cost $444,000 and hove a slacyear useful Ife. After $x years it would hove a salvage value of about $6,000. b. Sales in units over the next six years are projected to be os follows: o. Production and so os of the device would cequire working capital of $60,000 to finance sccounts rece vable, inventories, and day. to-day cash needs. This working caplial woud be relebsed at the end of the project's 'e. c. The devices would sell for $55 each; variable costs for producton, administretion, and seles would be $40 per unit e. Fxed costs for sal arles, maintenance, property taxes, Insurance, and streght- ine deprec ation on the equipment would total $169000 per year. (Depreclation is based on cost less salvage value.) 1. To gain rapid entry into the market, he company woulc have to advertise neaviy. The acverising costs would be: 9. The company's required rate of return is 15%. Click here to vew Exhiblt 14 Bad and Exhibit 148-2, to oetermine the oppropriate c scount fectorls) using tables. Required: 1. Compute the net cash infiow (incremental contribusion marg in minus incremental fived expenses) anticipated from sole of the device for each yeor over the next six years. 2.t Using the data computed in (t) above and other cato proviced in the problem. de:ermine the net present value of the proposed investment 2-b. Would you recommend thot Matheson accept the device as o new product? Complete this question by entering your answers in the tabs below. Using the date computed in (1) obove and other data proviceg in the problemisecantine the not creient valup of the Dollor amounos Step by Step Solution
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