NEed #1,#2 answered plz

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 $150,000 and have a six-year useful life. After six years, it would have a salvage value of about $18,000. b. Sales in units over the next six years are projected to be as follows: Year 1 2 3 4-6 Sales in Units 7,000 12,000 14,000 16,000 c. Production and sales of the device would require working capital of $47,000 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 $60 each; variable costs for production, administration, and sales would be $45 per unit. e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line 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 advertise heavily. The advertising costs would be: Year 1-2 3 4-6 Amount of Yearly Advertising $45,000 $56,000 $ 46,000 g. The company's required rate of return is 6%. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Note: Use the File button on the left of the window and download the fild HW6.1Q11 Tables. Use these tables to assist in your calculations of requirements 1 and 2a. 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? 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. Req 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.) Year 1 Year 2 Year 4-6 $ 105,000 $ 180,000 $ 240,000 Incremental contribution margin Incrememental fixed expenses Net cash inflow (outflow) Year 3 $ 210,000 $ 185,000 $ 25,000 $ 174,000 $ (69,000) $ 174,000 $ 6,000 $ 175,000 $ 65,000 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. Req 1 Req 2A Req 2B Using the data computed in (1) above and other data provided in the problem, 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 whole dollar amount.) Net present value $ (44,042) 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. Req 1 Req 2A Req 2B Would you recommend that Matheson accept the device as a new product? No Yes Use Question 11 from HW 6 for Matheson Electronics to complete the requirements below. If your answer to requirement 2-b on CONNECT was "yes", skip to requirement 2. Highlighted items are check figures that will be provided. 1. Look at your answer to requirement 2-b on connect: 4. DO THIS ONLY IF YOU ANSWERED NO on connect. If you answered yes, skip this. If your answer to 2-b on CONNECT was no, complete this requirement, it means your NPV was negative and Matheson should not accept the device as a new product. Let's assume a new marketing study was performed and indicates if Matheson increases advertising costs by 20% in the years 1 and 2 only, the sales will double their original projections for year 1, 75% higher than the projections for the second year and 50% higher than projections for year three. (Remember | that increasing sales will also increase COGS). Projections for sales in years 4 through 6, as well as the cost assumptions would remain unchanged. What would the new Net Present Value be with these adjustments to advertising expense and sales? Should Matheson Electronics accept the device now? Show your work by include the Cash Flows for the appropriate years and the discount factors used in the table below. b. DO THIS ONLY IF YOU ANSWERED YES on connect. If you answered no, skip this. If your answer to 2-b on CONNECT was yes, complete this requirement. It means your NPV was positive and Matheson should accept the device as a new product. Let's assume the company is concerned about its advertising budget and would like to decrease its advertising by 20% in years 1 and 2. A marketing study indicates that decreasing the advertising cost by 20% in the years 1 and 2 only, will decrease sales in the first, second and third year by 15%. (Remember that changing the projected sales will also change the COGS) Projected sales in years 4 through 6 as well as the cost assumptions would remain unchanged. What would the new Net Present Value be with these adjustments to advertising expense and sales? Should Matheson Electronics accept the device now? Show your work by include the Cash Flows for the appropriate years and the discount factors used in the table below. Y2 Y3 Y4 YS Y6 Use these table for (a) or (b) (10 points): Now Y1 Cost of equipment Working capital Yearly net cash flow Release of working capital Salvage value of equipment Total cash flows (a) Discount Factor (b) Present Value (a)x(b) Net Present Value 2. Assuming instead of making any changes to Advertising, Matheson Electronics has decided to sign a 3-year, 4% note for 30% of the purchase price of the equipment-the remainder of the price will be paid in cash and interest payments will be made annually with principal payment at the end of year 3. Update the calculation of NPV using this information. Hint: Include only the "cash needed for the cost of the equipment now. Include the interest payments in the yearly net cash flow amounts for the next 3 years and include the repayment of the principal amount at the end of year 3. Now Y1 Y2 Y3 Y4 YS Y6 Cost of equipment Working capital Yearly net cash flow Release of working capital Salvage value of equipment Repayment of Note Total cash flows (a) Discount Factor (b) Present Value (a)x(b) Net Present Value