sorry here you go
Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company tas performed marketing and cost studies that revealed the following information a. New equipment would love to be acquired to produce the device. The equipment would cost $444,000 and have a six year useful life. After six years, it would have a salvage value of about $6,000 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 500,000 to finance accounts receivable, inventories, and day to day cat need this working cont would be released at the end of the project's life a. The devices would su for $55 each vantable costs for production, arrestation, and sales would be $40 per unit e Fed costs for salones minnance property taxes, intrance and straight line depreciation on the equipment would total 5169.000 per year. Depreciation is based on cost less salvage value) Togam rapid entry into the market, the company would have to adverse heavily The advertising costs would be ferty 9 The companys required rate of return is 15 Chick here 10 w 42 ond to determine the appropriate discount factors using tables Required: 1. Compute menet cash into incremental contribution margin minus incremental fixed expenses) anticipated from sale of the device for each year over the next six years 2. Using the data computed in (t) above and other data provided in the problem, determine the net present value or the proposed vestmere 2b. Would you recommend that Matheson accept the device as a new product? Complete the gestion by entering your answers in the tabs below. RA Rog 20 Comoute the net cash inflow incremental contribution margin minus incremental fixed expenses) anticipated from tale of the device in each year over the next six years. (Negative amounts should be indicated by a minus sign) Year 2 Year3 Year 4-6 tal contribution margin commentare expenses Nantiow coufow Reg 2 > Complete this question by entering your answers in the tabs below. Regi Reg 2A Reg 28 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.) Motorsent value Complete this question by entering your answers in the tabs below. Reg Reg 2A Reg 20 Would you recommend that Matheson accept the device as a new product? No