Matheson Electronics has just developed a nutw electronic device that it belleves will have broad market appeal The company has performed marketing and cost studies that revealed the following information: a. Niew equipment would have to be acquired to produce the device. The equpment vould cost $240,000 and have a six-year useful ife. After six years, it would have a saivage value of about $18,000 b. Sales in units over the next six years are projected to be as follows: c. Production and soies of the device would require working capital of $56,000 to finance accounts receivable, inventories, and day' to-diy cash needs. This working capital would be teleased at the end of the project's life. d. The devices would sel for $35 eoch, variable costs for production, odministration, and sales would be $20 per unit. e. Fixed costs for salaries, maintenance, property taxes, insurance, ond straight-ine depreciation on the equipment would total $151,000 per year (Depreciation is based on cost less salvage value) f. To gain rapid entry into the market, the company would have to advertse heavy. The advertising costs would he: 9. The company's requires rate of return is in Cick here 10 vew Eahibe 1484 and Eitibit 148:2 to determine the oppropriate discount factor(5) using tabies Aequired: 1. Compute the net cash intiow (incremental contribution margin minus incremental fixed experses) anticipated from sale of the device for ench year over the next sik years. 2-a. Using the dota computed in (t) above and other data provided in the problect detersine ve net present value of the proposed ivestunent 2.b. Would you recommend trat Matheson occept the device as a new groduct? Compute the net cash inflow (incremental contribution margin minus incremental fxed expenses) anticipated from sale of the device for each year over the next six years. (Negative ampunts should be indicated by a minus sign.). Using the data computed in (1) above and other data provided in the problem, determ ne the net present value of the proposed investment. (Negative amounts should be indicated by a minus sign, Round your final bnswer to the nearest whole Sellar amount) Would you recommend that Matheson accept the device as a new product