Please help solve question #1 (Ch. 7 HW). I know that Requirement 2B is Yes.

1 1 Matheson Electronics has just developed a new electronic device that it belleves will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: 166 points New equipment would have to be acquired to produce the device. The equipment would cost $300,000 and have a six year useful life. Aner six years. It would have a salvage value of about $24,000 6. Sales in units over the next six years are projected to be as follows: ebook Year 1 2 Sales In Units 10.000 15.000 17,000 19.000 1-5 Production and sales of the device would require working capital of $61,000 to finance accounts receivable inventories, and days to dow cash needs. This working capital would be released at the end of the projecte d. The devices would sell for $30 eache variable costs for production administration, and sales would be $10 per unit Fwed costs for salaries, maintenance, property taxes, insurance, and straight line depreciation on the equipment would total 5174000 per year (Depreciation is based on cost less salvage value) To gain copid entry into the market the company would have to advertise heavily the advertising costs would be 1 ont of your Marine 1150,00 $ 50,000 000 1 9. The company's required rate of return is 13% 166 pon Click here to view Exhib: 78-1 and Exhibit 782 to determine the appropriate discount factor(s) using tables 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. 24 Using the data computed in (1) above and other data provided in the problem, determine the net present value of the proposed Investment 2.6. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg1 Red 2A Reg 2 Compute the nethindow (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 sion) Yeart Year 2 Year Year 4.5 incremental contribution margin locemented expenses Notch w outflow) Req2A > ME C 1 1 9. The company's required rate of return is 13%. 166 points Click here to view Exhibit 78.1 and Exhibit 7B-2, to determine the appropriate discount factor(s) using tables. 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 2b. Would you recommend that Matheson accept the device as a new product? Investment Complete this question by entering your answers in the tabs below. RA1 Reg 2 Reg 20 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.) EXHIBIT 7B-1 Present Value of stater 63 sa 07 Periods 45 5 81 9% 109 11% 12 M 15 16 17 18 21 22 23 249, 25 1 0962 0952 0943 09750926 0917 0909090108920885087708700862 0855 08470840 0833 0826 0820 08130806. 0800 2 0925 0907 0890, 0873 0857 0842 0826 0812 0797 0783 0769 0756 0743 0731 07180.706. 06940683 0672 0661 0.650 0.640 09890864 084008160794 0.772 0751 0731 0.712 0693 0675 0658 0641 0624 06090593 0579 0564 0.551 053705240512 + 0855 0822_07920763 0735 0708 0.080 0659 0636 06130592 0.572 0552 0534 0516 0.499 0.182 04670451 0.437 0423 0410 5 0.822 0784 0742 0713 0681 0650 0.62 0.593 0.567 0543 0.519 0.497 0.476 0456 0.437 0419 0402 0386 03700355 03410328 6 07900746 0705 066 0630 0596 0564 0.535 05070480 0.456 0432 0410 0,390 0370, 0352 0335 0319 03030.2890225 0262 2 0.760 0711 0665 0623 0583 0547 050 0482 0152 0425 0.000 0376 0354 0.333 03M0296 0279 0.263 0249 0235 0222 0.210 8 073106710627 0582 0540 0 502 04670434 0404 0376 0351 0327 0.305 0285 0266 0249 0233_0218 0204 0191 01790168 07030645 0532 0541 0500 0.460 0424 0391 0.361 033 0308 0284 0263 024 0.225 0209 0194 01800167 0155 0164 0134 10 05750694 0554 SON 0463 0422 0386 0.152 0322 0295 0270 0247 0227 0208 0191 01760162 0349013701260116 0.107 0650055 0.527 0475 0429 038 0350 0.37 027 0261 0232 021501950178 0162 048 013501230112 0103 0094 0086 12 0625 0957 04970444 0.3970356 0.319 0286 0.257 0231 0208 0.17 058 0152070124 0112 01020092 000076 0069 001 050 0469 0415 0368 0.126 0290 025 0229 0204 015201620145 010011601040093 OO 0079 0068 0061 0055 0571 0505 0612 0.388 0340 0299 023 0232 0205 098100011 01250111 0099 00 0028 069 0062 0055 00490041 0980481 0817 02 05 0275 029 0209 018300 OMO 0123 010 0005 008 007 0065 005 0051 0045 00400035 16 0534 0458 0754 0330 0292 0252 02101880163 0141 012 0107 00030081 00710052 0056 0047 004200360032 0028 17 05004360371 0.3 0270 021 0198 0170 OM60225 008 007 008 0059 00600052 0045 0039 00 0030.0026 0.023 0404010350026 0.250 0212 01800153 013001 0095 000 000 0059 0051 004 003 0032 0028 00240021 001 19 0475 002 0271 0232 014 0164 01380116 0098 008 007000600051 0043 00 003 002 0023 00200017003 20 0456 031 030 025 025 018 019 0124 004 0087 007 0061 0051 0043 000 003100700220099 001600M 0012 21 0.00035 0204 0242 090164 015 01120093 007 0064 005 0044 003 0031 0026 002 001 000000000000 0422 0342 02740226 0184 0150 013 01010083 0068 005 004 0038 0032 0026.0022 001800150013 0011 23 0406 0126 0262 0.211 010 008 01120031 007 0060000 0000 0033 0027 0022 003 00150012 000 0009 0007 0006 0.0000007 24 030030247 0157 015 0126 002 0082 0066 00500001 005 0021 0023 001 0015 000 000 000 0001 0006 0005 2 0.375 0295 023 0184 0401160092 0074 005 004 003 0030 0024 000 000 000 000 0000 000 000 000 0004 20 0361 0281 0220.0172 01350106 008 006 0053 0042 0033 00250021 00170 000 000 000 000 000 000 000 22 0.3410208 0207 09101250098 007 0060 0047 0037 002 0023 00 010011 0000 000 000 0005 0000 0000 0002 2 03 0255 016 0150016 0000 000054 00420033 0025 0.02000160012 000 000 000 000 0000 0003 0002 0002 29 0.21 0243 015 0141 0907 002 0063 000 0037 0029 0072 000 0014000008 0006 0005 0004 000 0002 0002 0002 30 0308 0231 01101100990075 0057 004 003 002600700015 000 0000 000 0005 0004 000 000 000 000 49 020 GM20097 006 002 0022 00 0011 000 0005 0000 0000 000 000 000 0001 0000000000000000 EXHIBIT 78-2 Present Value of an Annuity of S1 in Arrears: 2 18% 2 8 9 10 11 12 7904 Periods 47 5% 6% 73 B 9 10% 11 12% 1339 14 15 16 17 209 26 23 245 25 1 09620952 0943 0935 0926 0917 09090901 0893 0.885 08770870 0.862 0.855 0.8470840 083 0826 08200.8130806 0800 2 1886 1859 1833 1808 1782 1759 1736 1713 1690 1668 1647 1626 1605 15851566 1547 1528 1509 1492 1474 1457 1440 3 2775 2723 2673 2624 2577 2531 2487 2444 2.402 2361 2322 2283 2246 2210 2174 2140 2106 2074 2042 2011 1981 1952 . 3630354634653387 33123 240 3.1703102 3037 2974 2914 2855 2798 2743 2690 2639 2589 2540 2494 2448 2404 2362 5 4452 42294212 4100 39933890 3791 3696 3.605 3517 3433 3352 3274 3199 31273058 2991 2.926 2854 2803 27452689 5242 5076497 4767 4623 4486 4355 4231 4111 3.998 3889 3784 3685 3589 3.498 3410 3326 3245 31673092 3020 2.951 60025786 5582 5389 5.206 5033 4868 4712 4564 4423 4288 4160 4039 3922 3.812 370636053508 3.416 3327 32423161 6.733 6.463 6210 5971 5747 5.535 5335 5346 4.968 4799 4639 4487 4364 4207 4078 3.954 3837 3726 3619 3518 3.421 3329 7435 7108 6 802 6515 6 247 5.995 5759 5537 5328 513249464772 4607 4451 4303 4163 4031 3.905 378636733566 3463 8111 7722 7360 7024 6.710 6418 6.145 5889 5650 5 426 5.216 5.019 4833 4659 4494 43394192 20543923 37993582 3521 8760 8306 7887 7499 7139 6 805 6.195 6 207 5938 5687 5453 5.234 5029 4836 46564486 432741774035 3902 37763656 9385 863 8384 7943 75362161 68546492 6194 598 5660 5.421 5197 4988 4793461144394278 4127 3985 3851 3725 1 9.986 9.394 88538358 7487 71036750 6424 6122 5842 5583 5342 51491047154533 43624203 4053 39123780 14 10.563 9899 9.295 8745 82447786 7.367 6.982 6 628 6.302 6002 5724 5.468 5229 5008 4802 4611 4.632 265 40952324 15 11118 10.3809712 910R 8559 8061 7606 7191 68116.462 6.142 58475575 5 324 5092487646754489315415340011859 16 11652 10.838 10106 9447 8891 8313 7824 7379 69746604 6265 5954 566 5 405 5.1624938 47304536 4357 418940313887 12 12.166 1127410477 9763 9122 8544 8022 7549712067296373 6047 5749 5475 5.222 4.99047754576 4291 4219 4059 390 B 12659 11690 10828100599372 8756 8 201720277506840 6.467 61285185531 5.273502348124608 4419 4203 4080 1928 19 13134208511158 10.336 9604 8950 365 7839 73655938 65506198 58775586 536507048434635 442 426 40973942 20 1590 12.462 14700594 9818 9129 8517963 74607025 6623 6259 5929 562 5353 5107 4820 4657446042704110 3954 21 14029 1221 11764 10.836 100179292 8649 8075 7562 710 6687 6312 5972 5665 5184 51274891 4675 476 42921213561 22 144511.1612042 11 061 10.200 9442 772 816 76457170 673 6359 601 5696 5410 5594909 1690 402 41303970 23 14*57 119 1230311272 60371 95808 826677187230 6.792 6299 5044 572355167: 4975 4703440943 7 97 24 15 247 11799 12.550 11469905209707 8985 7784728 635 6.434 073 5.74654515124932715074314 3981 15 622 0912783 1654 10675 923 907 R422784373306873 0.064. GOW 576 54675195494 4721 451 473 47 305 26 1593 M375 0.001 11826 10 99299161 B7896712 69060.4015733540 52064956 472 4520 428 451 3 27 33014641 211 1197 0935900279337857974096 935 6514 6136 5.79549252549644734 24 390 28 166M 406 127 1105110116 9307 BOX 7984 7411 6501 6534 615 50 5502 523 97479452 453992 20 1984 15 591 122711158 09890 N60 8022 YAO 690 6551610050 5510 52 495 531 59 7994 30 202 1537215 409 1125 10/16 9021 BM MOSS 7496700365666112 529 551 52 5497MM 403995 1973 154 15086133211925025797798951M70347056642 623 71 514 525 470 4.5144 466999