please, help me with q2). (the first picture with the unfilled table). The rest of the pictures providing all necessary numbers for calculations.

2. Assuming instead of making any changes to Advertising, Matheson Electronics has decided to sign a 3-year, 4% note for 30% of the purchase price of the equipmentthe remainder of the price will be paid in cash and interest payments will be made annually with principal payment at the end of year 3. Update the calculation of NPV using this information. Hint: Include only the "cash needed for the cost of the equipment now. Include the interest payments in the yearly net cash flow amounts for the next 3 years and include the repayment of the principal amount at the end of year 3. Now Y1 Y2 Y3 Y4 Y5 Y6 Cost of equipment Working capital Yearly net cash flow Release of working capital Salvage value of equipment Repayment of Note Total cash flows (a) Discount Factor (6) Present Value (a)x(b) Net Present Value 3. Review your NPV's on connect with the NPVs calculated in 1 and 2 above. Your highest NPV will be considered your "base scenario". Consider this your base scenario through the remainder of the project. Use your cash flows from this "base scenario" and calculate the payback period for Matheson's new electronic device. Does using the payback period change the decision about pursuing the project? a. DO THIS ONLY IF YOU ANSWERED NO on connect. If you answered yes, skip this. If your answer to 2-b on CONNECT was no, complete this requirement, it means your NPV was negative and Matheson should not accept the device as a new product. Let's assume a new marketing study was performed and indicates if Matheson increases advertising costs by 20% in the years 1 and 2 only, the sales will double their original projections for year 1, 75% higher than the projections for the second year and 50% higher than projections for year three. (Remember that increasing sales will also increase COGS). Projections for sales in years 4 through 6, as well as the cost assumptions would remain unchanged. What would the new Net Present Value be with these adjustments to advertising expense and sales? Should Matheson Electronics accept the device now? Show your work by include the Cash Flows for the appropriate years and the discount factors used in the table below. Use these table for () or (b) (10 points): Y1 Y2 Y5 + Now Y3 Y4 Y6 Cost of equipment - 114,000 Working capital -51,000 Yearly net cash flow 42,600 143,850 118,500 46,000 46,000 46,000 51,000 Release of working capital Salvage value of equipment 6,000 Total cash flows (a) -165,000 42,600 143,850 118,500 46,000 46,000 103,000 Discount Factor (b) (6%) 1 0.943 0.890 0.840 0.792 0.747 0.705 Present Value (a)x(b) - 165,000 40,172 128,027 99,540 36,432 34,362 72,615 Net Present Value 246,148 Explanation Show corres Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: sed a. New equipment would have to be acquired to produce the device. The equipment would cost $114,000 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: Year 1 2 3 4-6 Sales in Units 8,000 13,000 15,000 17,000 ences c. Production and sales of the device would require working capital of $51,000 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 $45 each; variable costs for production, administration, and sales would be $30 per unit e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $177,000 per year. (Depreciation is based on cost less salvage value.) f. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: present value of the proposed investment. 2-b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Req ZA Reg 2B 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.) Net present value $ 79,944) es Other data provided in the problem, determine present value of the proposed investment. 2-b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Would you recommend that Matheson accept the device as a new product? No Yes Req 2A Req 26 ices Explanation 1. 2. Assuming instead of making any changes to Advertising, Matheson Electronics has decided to sign a 3-year, 4% note for 30% of the purchase price of the equipmentthe remainder of the price will be paid in cash and interest payments will be made annually with principal payment at the end of year 3. Update the calculation of NPV using this information. Hint: Include only the "cash needed for the cost of the equipment now. Include the interest payments in the yearly net cash flow amounts for the next 3 years and include the repayment of the principal amount at the end of year 3. Now Y1 Y2 Y3 Y4 Y5 Y6 Cost of equipment Working capital Yearly net cash flow Release of working capital Salvage value of equipment Repayment of Note Total cash flows (a) Discount Factor (6) Present Value (a)x(b) Net Present Value 3. Review your NPV's on connect with the NPVs calculated in 1 and 2 above. Your highest NPV will be considered your "base scenario". Consider this your base scenario through the remainder of the project. Use your cash flows from this "base scenario" and calculate the payback period for Matheson's new electronic device. Does using the payback period change the decision about pursuing the project? a. DO THIS ONLY IF YOU ANSWERED NO on connect. If you answered yes, skip this. If your answer to 2-b on CONNECT was no, complete this requirement, it means your NPV was negative and Matheson should not accept the device as a new product. Let's assume a new marketing study was performed and indicates if Matheson increases advertising costs by 20% in the years 1 and 2 only, the sales will double their original projections for year 1, 75% higher than the projections for the second year and 50% higher than projections for year three. (Remember that increasing sales will also increase COGS). Projections for sales in years 4 through 6, as well as the cost assumptions would remain unchanged. What would the new Net Present Value be with these adjustments to advertising expense and sales? Should Matheson Electronics accept the device now? Show your work by include the Cash Flows for the appropriate years and the discount factors used in the table below. Use these table for () or (b) (10 points): Y1 Y2 Y5 + Now Y3 Y4 Y6 Cost of equipment - 114,000 Working capital -51,000 Yearly net cash flow 42,600 143,850 118,500 46,000 46,000 46,000 51,000 Release of working capital Salvage value of equipment 6,000 Total cash flows (a) -165,000 42,600 143,850 118,500 46,000 46,000 103,000 Discount Factor (b) (6%) 1 0.943 0.890 0.840 0.792 0.747 0.705 Present Value (a)x(b) - 165,000 40,172 128,027 99,540 36,432 34,362 72,615 Net Present Value 246,148 Explanation Show corres Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed marketing and cost studies that revealed the following information: sed a. New equipment would have to be acquired to produce the device. The equipment would cost $114,000 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: Year 1 2 3 4-6 Sales in Units 8,000 13,000 15,000 17,000 ences c. Production and sales of the device would require working capital of $51,000 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 $45 each; variable costs for production, administration, and sales would be $30 per unit e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $177,000 per year. (Depreciation is based on cost less salvage value.) f. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: present value of the proposed investment. 2-b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Req ZA Reg 2B 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.) Net present value $ 79,944) es Other data provided in the problem, determine present value of the proposed investment. 2-b. Would you recommend that Matheson accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Would you recommend that Matheson accept the device as a new product? No Yes Req 2A Req 26 ices Explanation 1