ting Project #36 Saved Help Sa B Case 13-32 Net Present Value Analysis of a New Product (L013-2) 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: book a. New equipment would have to be acquired to produce the device. The equipment would cost $228,000 and have a six-year useful life. After six years, it would have a salvage value of about $12,000 b. Sales in units over the next six years are projected to be as follows: Year sales in Unit 12.000 19.000 c. Production and sales of the device would require working capital of $54 000 to finance accounts receivable, inventories, and day to-day cash needs. This working capal would be released at the end of the project's life d. The devices would sell for $60 each: variable costs for production administration, and sales would be $45 per unit e Foxed costs for salaries, maintenance, property taxes, insurance and straight line depreciation on the equipment would total $149.000 per year Depreciation is based on cost less salvage value) t. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: tot Yearly vertising ounting Project 13 Seved Helps d. The devices would sell for $60 each; variable costs for production, administration, and sales would be $45 per unit. e. Fixed costs for salaries, maintenance, property taxes, insurance, and straight-line depreciation on the equipment would total $149,000 per year. (Depreciation is based on cost less salvage value.) 1. To gain rapid entry into the market, the company would have to advertise heavily. The advertising costs would be: points Amount of Yearly Mavertising 573,000 563.000 55.000 9. The company's required rate of return is 15% Click here to view Exhibit 138-1 and Exhibit 138.2. to determine the appropriate discount factors) 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-. 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? Complete this question by entering your answers in the tabs below. Reg 1 Reg2A Reg 20 Compute the net cash intow incremental contribution margen 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 sign.)