cmheducation.com%252F#/activity/... kam Saved Help Save & Exi George Matheson is the general manger of Nancy Pelosi Electronics who has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: a. New equipment would have to be acquired to produce the device. The equipment would cost $114,000 and have a six-year useful life. After six years, it would have a salvage value of about $6,000 b. Sales in units over the next six years are projected to be as follows: Year 1 2 3 4-6 Sales in Units 8,000 13,000 15,000 17,000 c Production and sales of the device would require working capital of $51,000 to finance accounts receivable, inventories, and day- to-day cash needs. This working capital would be released at the end of the project's life. d. The devices would sell for $45 each: variable costs for production, administration, and sales would be $30 per unit e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $177,000 per year. (Depreciation is based on cost less salvage value.) f. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: Year 1-2 Amount of Yearly Advertising $32,000 $60,000 den an Prey. 1 of 1 Next > f. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be Year Amount of Yearly Advertising $32,000 $ 60,000 $50,000 4-6 g. The company's required rate of return is 6%. Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables Required: 1. Compute the net cash inflow (incremental contribution margin minus incremental fixed expenses) anticipated from sale of the device for each year over the next six years. 2-a. Using the data computed in (1) above and other data provided in the problem, determine the niet present value of the proposed investment 2-b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 2B Prey 1 of 1 Next Periods 1 2 3 4 5 6 7 8 8 9 10 11 12 13 14 15 5% 6% 7% 8% 9% 10% 11% 12% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0783 0.769 0756 0743 0.731 0.718 0706 0.694 0.683 0.672 0.661 0 650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0.410 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0,630 0.596 0.564 0.535 0.507 0480 0.456 0.432 0.410 0.390 0.370 0352 0.335 0.319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0623 0.583 0.5470513 0.482 0.452 0425 0.400 0.376 0.354 0.333 0314 0.296 0.279 0263 0249 0235 0722 0.210 0.731 0.677 0.627 0.582 0.540 0.502 0467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.424 0.391 0.361 0333 0.308 0.284 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0155 014 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0.552 0.497 0.444 0.397 0.356 0.319 0.286 0257 0.231 0,208 0.187 0.168 0152 0137 0.124 0.112 0.1020.092 0.083 0.076 0.069 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0,182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.534 0.458 0.394 0.339 0.702 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0,095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.475 0.396 0.331 0.277 0232 0194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0051 0.043 0.037 0031 0.031 0.027 0.023 0.020 0.017 0.014 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.043 0.037.0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.439 0.359 0.294 0.2420.199 0164 0.135 0.112 0.093 0.077 0.064 0.053 0.044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.01 0.009 0.422 0.342 0.278 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.0110.009 0.007 0.406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.1020.082 0.066 0.053 0.0430035 0.028 0.023 0.019 0.015 0,015 0.013 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.005 0.004 0.361 0.281 0.220 0172 0.135 0.106 0.084 0.065 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0,023 0.018 -0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 0.333 0.255 0.196 0.150 - 0.116 0.090 0.069 0.054 0.042 0.033 0.025 0.0200.016 0012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0,022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.308 0.231 0.774 0.131 0.099 0.075 0.057 0.044 0.033 0.025 0.020 0,015 0,012 0.009 0.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.0110.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 >> Desktop (99+ Yo Periods 4% 5% 6% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 2195 22% 23% 24% 25% 1 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 2 1.886 1.859 1.833 1.808 1.783 1.759 1736 1713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1.547 1.528 1.509 1.492 1.474 1.457 1.440 3 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.444 2.402 2.361 2322 2283 2246 2210 2.174 2.140 2106 2.074 2.042 2011 1.981 1.952 4 3.630 3546 3.465 3.387 3.312 3.240 3.170 3102 3037 2974 2914 2.855 2798 2743 2690 2639 2.589 2540 2494 2448 2404 2362 5 4.452 4.329 4.212 4.100 3.993 3.890 3791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 6 5.242 5,076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 7 6.002 5.786 5.582 5.389 5.206 5033 4.868 4712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3.416 3.327 3.242 3.161 8 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 4.968 4799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 3.726 3.619 3.518 3,421 3.329 9 7435 7108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5132 4946 4772 4.607 4.451 4.303 4.163 4,031 3.905 3.786 3.673 3.566 3.463 10 8.111 7.722 7.360 7,024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571 11 8.760 8.306 7887 7499 7139 6.805 6.495 6.207 5.938 5.687 5.687 5453 5.453 5.234 5.0294.836 4.656 4.486 4327 4177 4.035 3.902 3776 3776 3.656 12 9.385 8.863 8.384 7.943 7536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3.851 3.851 3.725 13 9.986 9.394 8.853 8.358 7904 7.487 7.103 6.750 6.424 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4715 4.533 4.362 4.203 4.053 3.912 3.780 14 10.563 9.899 9.295 8.745 8.244 7.786 7367 6.982 6,628 6.302 6.002 5724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 16 11.652 10.838 10.106 9,447 8.851 8.313 7824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4730 4.536 4.357 4.189 4.033 3.887 17 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.5497120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4,059 3.910 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.702 7250 6.840 6.467 6128 5.818 5.534 5.273 5.033 4.812 4.608 4.419 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4,097 3.942 20 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7469 7.025 6.623 6.259 5.929 5.628 5.353 5101 4.870 4.657 4.460 4.279 4.110 3.954 21 14.029 12.821 11.764 10.836 10.017 9.292 8.649 8.075 7562 7102 6.687 6.312 5.973 5.665 5,384 5127 4.891 4.675 4.476 4.292 4.121 3.963 22 14.451 13.163 12.042 11.061 10.201 9.442 8.7728.176 7645 7.170 6.743 6.359 6.011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 1230311272 10.371 9.580 8.883 8266 7718 7.230 6.792 6.399 6.044 5723 5.432 5.167 4.925 4.703 4.499 4.311 4137 3.976 24 15.247 13.799 12.550 11.469 10.529 9707 8.985 8.348 7.784 7.283 6.835 6.434 6,073 5746 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11,654 10,675 9.823 9.077 8.422 7843 7330 6.873 6.464 6.097 5.766 5.457 5.1954.948 4.721 4.514 4323 4147 3.985 26 15.983 14.375 13.003 11826 10.810 9.929 9.161 8.488 7.896 7372 6.906 6.491 6.118 5.783 5.480 5,206 4 956 4728 4.520 4328 4151 3.988 27 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.332 4.154 3.990 28 16.663 14.898 13.406 - 12.137 11.051 10.116 9.307 8.602 7984 7441 6.961 6.534 6152 5.810 5,502 5.223 4.970 4.739 4.528 4.335 4157 3.992 29 16.984 15.141 13,591 12.278 11.158 10.198 9,370 8.650 8.022 7470 6.983 6.551 6.166 5.820 5.510 5.2294.975 4743 4.531 4.337 4.159 3.994 30 17,292 15.372 13765 12.409 11.258 10.274 9.427 8.694 8,055 7496 7003 7003 6.566 6.177 5.829 5.517 5.235 4.9794746 4.534 4.339 4.160 3.995 40 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7634 7105 6.642 6.233 5.871 5,548 5.258 4.997 4760 4.544 4.347 4.166 3 999 >> HI ge Deskton Req 1 Req 2A Req 2B Compute the net cash inflow (incremental contribution margin minus incremental fixed expenses) antic device for each year over the next six years. (Negative amounts should be indicated by a minus sign.) Year 1 Year 2 Year 3 Year 4-6 Incremental contribution margin Incrememental fixed expenses Net cash inflow (outflow) Req Req 2A > Req 1 Req 2A Req 2B Using the data computed in (1) above and other data provided in the problem, determine the net present proposed investment. (Negative amounts should be indicated by a minus sign. Round your final answer to dollar amount.) Net present value Fing your answers in the tabs below. Reg 1 Reg 2A Req 2B Would you recommend that Matheson accept the device as a new product? No OYes