Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information:

1. New equipment would have to be acquired to produce the device. The equipment would cost $474,000 and have a six-year useful life. After six years, it would have a salvage value of about $24,000.
2. Sales in units over the next six years are projected to be as follows:

Year Sales In Units

year 1 18000

Year 2 23000

year 3 25000

Year 4-6 27000

1. Production and sales of the device would require working capital of $62,000 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.
2. The devices would sell for $30 each; variable costs for production, administration, and sales would be $15 per unit.
3. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $144,000 per year. (Depreciation is based on cost less salvage value.)
4. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be:

Year Amount of yearly advertising

1-2 $223000

3 $71000

4-6 $61000

The company's required rate of return is 18%.

Question and I need assistance with formulas:

Incremental cash margin:

For year 1:

For year 2:

For year 3:

For year 4-6

Incremental fixed expense:

For year 1:

For year 2:

For year 3:

For year 4-6

Net cash inflow (outflow)

For year 1:

For year 2:

For year 3:

For year 4-6

Net Present Value: