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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

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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: a. New equipment would have to be acquired to produce the device. The equipment would cost $246,000 and have a six-year useful life. After six years, it would have a salvage value of about $24,000. b. Sales in units over the next six years are projected to be as follows: c. Production and sales of the device would require working capital of $57,000 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. d. The devices would sell for $40 each; variable costs for production, administration, and sales would be $25 per unit. e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciotion on the equipment would total \$132,000 per year. (Depreciation is based on cost less salvage value.) f. To goin rapid entry into the market, the company would have to odvertise heavily. The advertising costs would be: 9. The company's required rate of retum is 15% 9. The company's required rate of return is 15%. Click here to view Exhibit 148-1 and Exhibit 148-2, to 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.a. Using the data computed in (T) above and other data provided in the problem, determine the net present value of the proposed investment. 2.b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Using the data computed in (1) above and other data provided in the protiem, 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 wholo dollar amount.) equired: Compute the net cash inflow (incremental contribution margin minus incremental fixed expenses) anticipated from sale of the device Pr each year over the next six years. 1-a. Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed nvestment. 2-b. Would you recommend that Matheson accept the device as a new product? Answer is not complete. Complete this question by entering your answers in the tabs below. 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 minus sign.)

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