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: ANew 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.$ BSales in units over the next six years are projected to be as follows: $(Year1$ : Sales $in$ units was $18,000)(Year2$ : Sales $in$ units was $23,000)(Year3$ : sales $in$ units was $25,000)(Year4-6$ : Sales $in$ units was $27,000)$ CProduction 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. DThe devices would sell for $$30$ each; variable costs for production, administration, and sales would be $$15$ per unit. EFixed costs for salaries, maintenance, property taxes, insurance, and straight$-$line depreciation on the equipment would total $$144,000$ per year. $($Depreciation is based on cost less salvage value.$)$ FTo gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: $(Year1-2$ : Amount $of$ yearly advertising cost would $be$ $$223,000)($Year $3$: Amount of yearly advertising cost would be $$71,000)($Year $4-6$ : Amount of yearly advertising cost would be $$61,000)$ The company's required rate $of$ return $is18\%.$ USE EXHIBIT $7B-1$ and $7B-2to$ determine the appropriate discount factor$(s)$ using tables. 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. $2-$aUsing the data computed in $(1)$ above and other data provided in the problem, determine the net present value of the proposed investment. $2-$bWould you recommend that Matheson accept the device as a new product?