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Matheson Electronics has just developed a new electronic device that in beteves will hove brood market appeal. The company has performed marketing and cost studies

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Matheson Electronics has just developed a new electronic device that in beteves will hove brood market appeal. The company has performed marketing and cost studies that revealed the following information: a. New equipment would have to be acqulred to produce the device. The equament would cost $474,000 and hove a sox-year usefur ife. After stx years, it would have a salvage value of abour $24,000 b. Sales in units over the next six years are projected to be os follows c. Producton and sales of the cence would require working captal of $62,000 to finance accounts receivable, inventories, and day? to-day cash needs. This working capital would be released ot the end of the project's ufe. d. The devices would sell for $30 each, variable costs for production, odminstrabon, and sales would be $15 per unit e. Fixed costs for salarles, maintenance, property taves, insurance. and straight-iline depreciation on the equipment would totai $144,000 per yeat. (Depreciation is based on cost less salvege value) f To gain rapid entry into the market, the company would hove to advertise hesvly. The advertsing costs would be: 9. The company's required rate of requrn is 192 Click here to view Fxhibit1282 and Exhimi12P2, to determine the oppropnate ciscount factorlsi using tables. Requlred: 1. Compute the net cash infow (encremental contribution maign ininus incremenal fived expenses) anticipated from sale of the device for each year over the next six years 2-a. Using the dato computed in (9) obove and cther doso proviced in the problent determine the net present volus of the proposed Investment 2.b. Would you recommend that Matheson accept the device os a new procuct? Complete this auestion by entering your answerk in the tab-s below. Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed investment. (Hegative amount should be Indicated by a minus aign. Round your final answer to the nearest whole dollar amount.) Would you recommend that Matheson accept the device as a new product

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