Matheson Electronics has just developed a new electronic device that it beleves wil have brood market appeal. The company has performed marketing and cost studes that revesled the following information: a. New equipment would have to be acquired io produce the device. The equpment would cost $180,000 and have a six-year useful life. After sox years, it would have a salvage value of about $12,000. b. Sales in units aver the next sax years are projected to be as feliews: c. Production and sales of the device would require working caphal of $49,000 to finance accounts recewable, 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 sel for $35 each; wariable costs for production, administration, and sales would be $20 per unit e. Fined costs for salaries, maintenance, property taxes, insurance, and straight-line depreciabion on the equipment would tocal $153,000 per year (Depreciation is based on cost less salvage value) f. To pain rapid entry into the market, the compery would have to advertise heawly. The advertising costs would be: 9. The company/s required rate of setum is 9%. Required: L. Compute the net cash inflow incremental contribution margin minus incremental foced expenses) anticipated from sale of the device for each year over the next six years. 2-a. Usirg the dats cemputed in (1) above and other dota provised in the problem, determine the net present value of the proposed imvestment. 2-b. Would you recommend that Motheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Compute the net cash inflow (incremental contribution margin minus incremental flxed expenses) anticipated from sale of the device for each year over the next six years. (Negative amounts should be indicated by a minus sign.) Exhist 14B-2 Presnet valee of an Annity of 51 is Arrean, r11(1+r)21 Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment. (Negative amounts should be indicated by a minus sign. Round your final answer to the nearest whole dollar amount.) Net present value Would you recommend that Matheson accept the device as a new product