Given Data: Alpha Homes is poundering an opportunity to produce and sell a new smart home monitoring system that can be managed remotely using a smart phone app. The company has gathered the folloing data: Probable costs and market potential: New equipment cost $250,000 Usable life in years 10 Salvage value as % of cost 10% Working capital investment $100,000 Year when working capital would be released 10 Projected sales: Year Units 1 5,000 2 7,000 3 10,000 4-10 12,000 Unit selling price $130 Variable costs per unit $70 Advertising costs: Year Amount 1-2 $200,000 3 $120,000 4-10 $110,000 Fixed costs per year for Salaries, insurance, maintenance, depreciation $350,000 Minimum rate of return 10% Required: Ignore income taxes 1. Compute the net cash inflow (cash receipts less yearly cash operating expenses) anticipated from sale of the monitoring systems for each year over the next 10 years (15 Marks). 2. Determine the net present value of the proposed investment. Would you recommend Alpha Homes invest in this new product? (15 Marks)