I have searched what is available already and cannot seem to find exact answers. I think I have figured the first part but still wanted to check with someone. However the questions have me so confused :(,Conch Republic Electronics Chapter Case ,-Spent $750,000 to develop a new PDA ,-Spent an additional $200,000 for marketing study to determine the expected sales. ,-Can manufacture the new PDA with variable cost for $215.00 each. ,-Fixed Costs for the operation are estimated at $4.3 million per year. ,-Unit Price $500.00 each ,-Necessary equipment to produce the PDA will cost $32.5 million, with depreciation for 7 years (MACRS Schedule),-It is believed that this equipment after 5 years will be worth $3.5 million. ,-NWC will be 20% of Sales ,-Changes in NWC will occur in Year 1, with the first year sales. ,-Conch Republic Corporate Tax Rate is 35% and has a 12% required return. ,-Estimated sales volume per year is: ,1. 65,000 ,2. 82,000 ,3. 108,000 ,4. 94,000 ,5. 57,000,,Calculate the following:,-payback period of the project,-profitability index of the project,-IRR,-NPV,,-How sensitive is the NPV to changes in the price of the news PDA? , ,-How sensitive is the NPV to changes in the quantity sold? , ,-Should Conch Republic produce the new PDA? , ,-Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis? ,
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