13 Year Units Matheson Electronics has just developed a new electronic device that it believes will have broad market appeal. The company has performed maricating and cost studies that revealed the following information: a New cquipment would have to be acquired to produce the device. The equipment would cost $246,000 and have a 10 six-year useful life. After six years, it would have a salvage value of about $24.000. points b. Sales in units over the next six years ere projected to be as follows Sales in 1 14,688 2 19,088 3 21,990 23,990 c. Production and sales of the device would require working capital of $57,000 to finance accounts receivable, inventories, and day to day cash needs. This working capital would be released at the end of the project's ife. The devices would sell for $40 each; variable costs for production, administration, and sales would be $25 per unit. Fixed costs for salaries, maintenance, property taxes, insurance and straight-line depreciation on the equipment would total $132.000 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: Anount of Yearly" Year Advertising 1-2 $133,888 3 $ 66,00 4-6 $ 56.999 The company's recuired rule of return is 15%. Click here to view Exhibit 14B-1 and Exhibit 14B-2. to determine the appropriate discount factors) using tables Required: 1. Compute the net cash inflow incremental contribution margin minus incremental fined expenses anticipated from sale of the device for each year over the next six years. 2-e. Using the data computed in above and other data provided in the problem, determine the net present value of the proposed Investment 2-6. Would you recommend that Mathesan accept the device as a new product? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 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. (Negative amounts should be indicated by a minus sign.) Show less Year 1 Year 2 Year 3 Year 4-6 Incremental contribution margin Incremamental fixed expenses Net cash inflow (outflow) Reg Req 2A >