I have searched what is available already and cannot seem to find


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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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