NPV Analysis of a New Product XYZ Electronics has just developed a new electronic device for automobiles that will verify how many miles the car is being driven and how safely the driver is driving. Studies have been done to determine probable costs and market potential. They have come up with the following information: a) New equipment would have to be acquired to produce the device. The equipment would cost $315K and have a 10-year useful life. After 10 years, it would have a salvage value of $15K.

b) Sales in units over the next 10 years are projected to be 6K in Year 1, 12K in Year 2, 15K in Year 3, and 18K in Years 4-10.

c) Devices would sell for $35 each and costs per unit is $15.

d) Fixed costs for salaries, maintenance, property taxes, and depreciation is $135K per year

e) Advertising costs over the next 10 years are projected to be $180K in Years 1 and 2, $150K in Year 3, and $100K in Years 4-10.

f) The company's required rate of return is 14%

Develop a cash flow table that begins with the equipment purchase in Year 0 and covers through Year 10 to show net cash flow. Then identify the NPV for this investment. Is it a good investment for XYZ Electronics?