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PLEASE HELP! I really need help on this fast... I will give a thumbs up There is not a part missing...that is just a typo!

PLEASE HELP! I really need help on this fast... I will give a thumbs up

There is not a part missing...that is just a typo! Sorry

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a. New equipment would have to be acquired to produce the device. The equipment would cost $180,000 and have a six-year useful life. After six years, it would have a salvage value of about $16800 b. sales in units over the next six years are projected to be as follows: c. Production and sales of the device would require working capital of $50,000 at the beginning of year 1 , 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. f. Fixed costs for salaries, maintenance, property taxes, insurance would total $125,000 per year. Depreciation is calculated using units of output method. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: g. The company's average tax rate is 20%; the required rate of return is 12%. quired: 1. Compute the net cash inflow anticipated from the 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? 3. Suppose the company wants a 15% internal rate of return on this investment. What should be the after-tax cash flow in year 6 to achieve this 15%. Assume Cash flow for years 1 to 5 will be the same as you computed in requirement 1

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