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: Year 1 2 3 4-6 Sales in Units 14,000 19,000 21,000 23,000 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 depreciation on the equipment would total $132,000 per year. (Depreciation is based on cost less salvage value.) t. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: Amount of Yearly Year Advertising 1-2 $133,000 3 $ 66,000 4-6 $ 56,000 9. The company's required rate of return is 15% Click here to view Exhibit 7B-1 and Exhibit 7B-2, to determine the appropriate discount factors) 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 (1) 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B 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.) Show less Year 1 Year 2 Year 3 Year 4- Incremental S $ S contribution margin 210,000 285,000 315,000 345,000 Incrememental foxed S S expenses 223,000 223,000 209,000 199,000 Net cash inflow S outflow) | 413.000 $62,000 6 $ 6.000 146,000