Question: 1. Include the following information from your CONNECT problem concerning Matheson Electronics Aand their new electronic device New Equipment Costs 474.000 Salvage Value Sales in






1. Include the following information from your CONNECT problem concerning Matheson Electronics Aand their new electronic device New Equipment Costs 474.000 Salvage Value Sales in Units Working Capital 62000 Fixed Costs 144000 24000 Year Units Advertising Year Amount 1-291000 1 18000 2 23000 3 25000 4-6 27000Rate of return S30 71000 4-6 61000 18% Sales Price per unit Variable cost per unit $1 2. Matheson Electronics decides to do more market research. A new study has indicated the sales for the first year would be double the original sales projections and 50% higher than the projections for the second year. Projections for sales in years 3 through 6, as well as the cost assumptions would remain unchanged. These new assumptions would cause your cash flows for years 1 and 2 to be different from your original analysis in 2-a of CONNECT. a. What would the new Net present value be with these sales projection changes? b. Should Matheson Electronics accept the device now? (1 sentence answer)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
