D Purdue owL: MLA Fc Unit 8 Homework ::: Apps D Sign In-QPS Park university! Parl Live TV! Spectrum T Spectrum TV D Purdue performed marketing and cost studie that revealed the following information: a New equipment would have to be acquired to produce the device. The equipment would cost $216,000 and have a six-yoar usafu to. After slx years, It would have a salvage value of about $12000 b. Sales In units over the next stx years are projected to be as follows c. Production snd sales of the device would require working c pital of $53,000 to finance accounts recevable, Inventories, and d5y- to-day cash needs. This working capital would be relessed at the end of the project's Ife. d. The devices would sel for $55 eech: veriable costs for producton, administration, and sales would be $4O per unn. e. Fixed costs for salanes, maintenance, property taxes, ingurance, and straight-ine depreciation on the equipment would tora $120,000 per year. Depreclation ls based on cost leas salvage value.) f. To gain rapid ntry IntOthe market, the company would h ve to advertise he vily. Th dvertising costs would be: g. The company's required rate of return is 14 Cick here to view Exhibit 138-1 and ExhIbn 13B-2 to determine the appropriate discount factoris) using tables Required 1 Compute the net cash Inflow pneremental contribuion margin minus incremental fixed expenses) anmeipated from sale of the device for each year over the next sx years 2-a. Using the data computed in (ty above and other data provided in the problem, determine the net precent value of the proposed 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. D Purdue owL: MLA Fc Unit 8 Homework ::: Apps D Sign In-QPS Park university! Parl Live TV! Spectrum T Spectrum TV D Purdue performed marketing and cost studie that revealed the following information: a New equipment would have to be acquired to produce the device. The equipment would cost $216,000 and have a six-yoar usafu to. After slx years, It would have a salvage value of about $12000 b. Sales In units over the next stx years are projected to be as follows c. Production snd sales of the device would require working c pital of $53,000 to finance accounts recevable, Inventories, and d5y- to-day cash needs. This working capital would be relessed at the end of the project's Ife. d. The devices would sel for $55 eech: veriable costs for producton, administration, and sales would be $4O per unn. e. Fixed costs for salanes, maintenance, property taxes, ingurance, and straight-ine depreciation on the equipment would tora $120,000 per year. Depreclation ls based on cost leas salvage value.) f. To gain rapid ntry IntOthe market, the company would h ve to advertise he vily. Th dvertising costs would be: g. The company's required rate of return is 14 Cick here to view Exhibit 138-1 and ExhIbn 13B-2 to determine the appropriate discount factoris) using tables Required 1 Compute the net cash Inflow pneremental contribuion margin minus incremental fixed expenses) anmeipated from sale of the device for each year over the next sx years 2-a. Using the data computed in (ty above and other data provided in the problem, determine the net precent value of the proposed 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
