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? ,

Order Your Custom Essay

Add to Wishlist

Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.

M | T | W | T | F | S | S |
---|---|---|---|---|---|---|

« Oct | ||||||

1 | ||||||

2 | 3 | 4 | 5 | 6 | 7 | 8 |

9 | 10 | 11 | 12 | 13 | 14 | 15 |

16 | 17 | 18 | 19 | 20 | 21 | 22 |

23 | 24 | 25 | 26 | 27 | 28 | 29 |

30 | 31 |

© 2015 www.regentessays.com. All Rights Reserved