Englewood 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:

a$.$ New equipment would have to be acquired to produce the smoke detector. The equipment would cost $$100,000$ and be useable for $12$ years. After $12$ years, it would have a salvage value equal to $10\%$ of the original cost.

b$.$ Production and sales of the smoke detector would require a working capital investment of $$40,000$ to finance accounts receivable, inventories, and day$-$to$-$day cash needs. This working capital would be released for use elsewhere after $12$ years.

c$.$ An extensive marketing study projects sales in units over the next $12$ years as follows:

$\backslash$table$[[$Year$,$Sales in Units$],[,4,000],[2.,7,000],[3.,10,000],[4-12,12,000]]$

d$.$ The smoke detectors would sell for $$45$ each; variable costs for production, administration, and sales would be $$25$ per unit.

e$.$ To gain entry into the market, the company would have to advertise heavily in the early years of sales. The advertising program follows:

$\backslash$table$[[$Year$,\backslash$table$[[$Amount of Yearly$],[$Advertising$]]],[1-2,$$$70,000$