Matheson Electronics has just developed a new electronic device it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information 3. New equipment would have to be acquired to produce the device. The equipment would cost $315,000 and have a six-year useful ife. After six years, it would have a salvage value of about $15,000 b. Sales in units over the next six years are projected to be as follows: Year 1 2 3 4-6 Sales in Units 9,000 15,000 18,000 22,000 c Production and sales of the device would require working capital of $60,000 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. a. The devices would sell for $35 each:variable costs for production, administration, and sales would be $15 per unit e Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $135,000 per year (Depreciation is based on cost less salvage value) To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be Year 1-2 3 Amount of Yearly Advertising $ 180,000 $ 150,00 $ 120,000 9. The company's required rate of return is 14% Click here to view Exhibit 14B-1 and Exhibit 148-2. to determine the appropriate discount factor(s) using tables 13 LAMINT Presei Valoe (1.10 Pero 1 49 TS NS 9 104 114 139 159 164 1296 1996 2196 2295 2394 249 090952094 0950-926 09170009 0.00105930.85 07708700562083547 0330 820 ONS 0935 0.00770.900x730857142060112 0.7970.700.756 0243 031 071 0706069 068 0672 0.650 0.010 OOOOO 16 01794 07720751 01 07120.09 0.61 0.0240009 0.593032901560551 OSAT 0.5240312 0.6590636 055 0314 0516 0492 0.46 0.22 0.5 0.74707 0307034 0.19 0.497 0700456 0.419000170 0155 0141 0746 0.6660.630 09860315 0.502 0.410 0370 01520 0119 0.3030389 0275 0.60 0.7 0.665 00S 070313041 0452 0.4350/40001760354 03140.296 0279 0.737 016770.027 0.552 041404040176 0.3510027 01218 0.191 0179 0.168 0.70 06-05 039 0.5 0.500 000042491036 0308002610 0225 0.200 0104 0.100.160.155 0144 011 0.6700.00 04610420161201220950270 0207 0.227 0.2009 0.1760162 019 01 0.125 01100107 0.50 033 03270435 0.429015003170207 0.26102370215010507762 0.18 0.115 0.112 0.101 000 0.65 0570492044010397 0.256 0319 0286 0.2000 17001520 100 100.092 00000069 0300460 04152002000023 0.229 0.20401820.163 0.145 011001160104 DOR 0.035 01 0.000000 009 DO 0255 0.1600140 0.123 0103 0.0570051004500400015 005019400292022020160141 0.1250107 00 00 0036003 0.03 003900140010 10 12 000 13 95 3.9 " STE 361 1681 9603 WAST LO 010 OOOOOO 90 1990 8590 590 189012302 SELOADEO RENOSSO 190 USO COSO 66PO ISTO PO OTTOPO 1990 10200990 LEPO NEO 0620 SOLD ZOOSPO OSO 0610 LO ISO SECOOPCO 900 OICOTICO 1910 OSO OSO LEO ECO PUD99CONCOSOCO IOCO KO WOSO LID 9000 TOLSTO 1000 SLOO 900 1900 TIDORO CORTO COOP SONOROSOS IPIO 0910 WOORHOODIDO COLOCOS SECONOCIDO 000. TODOS 2000 LLL CHOONLOOOO ISO S700ESOO 0000 OLONDOSOROSCOS O OLEROOROORTODO TOPO EROON 5600 LOROSOOOOOOOOOO 900 TOO 1000 11001 ISODO00000 YEDOOOOO HOO TOO SLO TOULOTTO HEID 1910 0900 HD ILOO LOD COD 100 1500 9100 TOO TO 900 100 POD TOOSIOONID PRO 00 CIDO 9000 160010 OUTONO O9CD9010 1100 100 COD COLD 1100 STOO OOOO FIODOO OOO 9000 810 10 9110 000, TOO FOOD LOGO PODO COCO 10 0000 9000 600 PIO 10 OSTO 2000 EOOD ONDOOOO LEOPOLO 0100 C100 90010 TONO LOO HOD 1100 COD 1100 2500 E SCOODOTTONIO TOROSO S000 000 1000 1000 1000 200000 0000 0000 000000000000 90 VI 19 20 21 0.116 0.00000070 005 0.017 00200000014 0256 077 0.112 033 0.215 0.17 0.149 0:1240.100007 0.07 0.06 0037 0.012 041 0330 0.204040.1990.160.1350112 0.001 0.021 0.06 0.053 0.014 0.017 000026 0.022 0011 0.000 1042203420275026 0.150.101 008 0.065 00 DO 00200120013 0.00 0.007 00740.000 00190.000 0033 0.027003200150015 0010010000 0.00 0.006 0190030 0.2470 197035 0212 0006 0.053 0.010000 0.002 0.005 033750-195 0233 146 00920024 0.059004206035 0.020 0.0160.0130010 0.009 0.007 0.000 0001 06 0210.220 1720:13570.106 0.0840066 0.0530042 0.0330026 0,021 0.01 001000110.000 0.000 0.005 07 0268 0.20 0.125 00470017 00290020 0.018 COTT 0.000007 0006 0.005 0.000 030255 0.1160.000 0010 0.00% 0.005 0001 0.002 0.002 0331 000155 0161 0.10700820.063001 0.017 0.029 00 0.000.000 0.005 0.004 0.000 0.002 0.002 0.003 0.025 0.0200015 0.0120.000 0.007 0.0050001 0.003 0.001 0.000 0.00 0.00 0.2080.142 0.0 0.067 0.0465 0.03 0.022 0.015 2011 DOK 2 003 10 10 XTITBIT 142 revent Value of an Annuity of St in Arrastlin Per 96 1.953 SENOSIOS SENSEILS SVE UST DONE 6 5 99 CIS 2 TERESSE 9 10 ZOSOWSER 11 OSS IT 12 PREY USS LOLO 14 15 16 19 69 29 109 1196 135 14% 1598 169 1796 1896 1940 209 219 229 2354 24% 254 0.9020952 09 09350 9360917 0.90909010898 OSS 08770870 0.862 0X55084 0.840 080102608200.813 0.5060 800 ISOR LR 1.750 1.736137131690 1668 1047 16261605 15 15661547 1525 1.500 1.492 1.474 1457 1440 27732723207327024257725112457 24442402201 2322232246 2210 211 2110 2106 2.0742042 2011 1981 3566 5465 3340 17031023087297429142352799 2278327020 2019 25892560 2.494 24482401 2.162 1329 212 100 19933.NO 3791 1.005 341131521274 3.199 3.1273058 2991 2926 2.864203 27452689 5242 5076 1917 16722 4486235542111111 1998 3.8893.784 1685 3.589 1498 1.4103126 3.245 3.167 1.092 3.0202.951 0.00 575635823505206 5.033 4.800 471245644423 4.25 41604039 3.923 112 3.706.605 3750314161327 3.242 3161 62733 64636210 391575335 335 10 44.799361944174.1444207 4,078 1954 1837 3.726 1619 3329 6515624715.9955.739551753285.132 4946472260741451303161 4031 2.905 376 3.673 1566 3.461 7.722 7100 7034 6.710 6418 6.145 5956505.426 52163.0194.833 4659 4404 4 139 14.192 4044 1.9211790 3682 3:57 8.700 8300 787 174 21:19 6.805 6,495 6.20739383687 5203514 5:029 4.8364656 4486 4127417714035 3.902 3.7761656 918 8.86 79413 23671668144926 1945913 5.660 5:421 3.197 496 4.7934611 4219 4.27814127985 3.85 3.735 998692194 8.337.901 7457 7103 6.75064246122 3.843538353424.910 4715 3533 4053 1.912 3.750 10 56598992195 245 8294178673676.926.628 6.102 6.0025.724 5468 5229 5.00 4.8024611 4.4 42654 108 3.002 3.824 1113 20.3509112108815595.0617606 3.1916.831 6.462 01207 5573 5324 5.092487647675 4.4894115 4.153 4-001 3359 11.10.838 10.1009:147 3.851 72473796.9746,604 6265 59545.66554055.1624938 4.730 453641574189 12. 166 11270 10.4779763 9.122854 7.5492067917360473.74934132224990 4.775 4.5763914219 4059 1.910 12659.0 108210.059 0372 8.75633201702 125006467 16:128 SNIS 53.2715033 4812460N 419 420 4,000 3.92 114 12081510336 901 8950 365 7.83973666.938 63506.198 5.827 3.5843163.070440 4.6354442 426 4097 3.943 13:59012462112470 10:39498139.12982510737.469 17025 6.6216259 3.929 5.628 4870 4.6574604219 16029 12820117764 10:36 10.0179292 8.075 75622102 66376312301566515184 5127 4591 4.67544476 429284121963 1445113,163 12.042 11 061 10.3019443 8.7728.1763 17645717067063596.011 5696 5.410 13.149 4302 4110 3.970 14357 2011-372. 10.370 9.50 333 126677182106792199 63044572154123.167 4925 4.7034499 4331 15 13.7991255011469 1045299.707 105 6535 6454 6.073 5.76 4.987 41433.951 15.622 14.094 12.783 1654 10,675 9.23 9.077 3.422 7.8431735068736466097 5.467 5.195 100 4.7214.5144323 41473.985 15. 331300211826 10109.9292.16124887962372 6.906 640 3.78 5.40 5.1064950 424520 4328 43151 16:30 1464313321111.987 10933100279.237 83437.907402 6.935 6514 613695795324923215 47344524 1990 16663 14898 13:406 12.117 11051 10.1162.907 8602 7.984741 6.9616,5146.152NO3.502 50224970 473945284135 157.992 1.984E13.591 12278 11158 10.19993708650 0227.47069816551 6166 5.8205510152294.975 4743451 43371594 1729215372 13.765 12.409 11:25 102769427 8.690557496 7.000 6566 617735291355175235 49794746454 4191603.995 19,793 17.159.15.0160.2332119250.7572.770 3.051 244 7034200526642020283 38455259.9971476055446,3471 166 3.999 CIE 4033 COR 18 19 20 21 23 101 SESES SOLD 09 0061 S069 LOE LE 30 ENGLATER NISIPS 47 HL LOS + SIC SE 26 112 886 1967 CEE 20 30 10 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. Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed Investment 2-6. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Red 25 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. (Negative amounts should be indicated by a minussion) Year 1 Year 2 Year 3 Year 4-6 Incremental contribution margin Incremental fled experts Nel cash inflow coulifow) Reg 2 >