Case Study

Working detonating device Case Study Conch res publica electronic data as follow: &shit; Conch Republic fagged $750,000 to scram a prototype for a impudently organizer and spent $200,000 for a marketing study. • Conch Republic flowerpot do the new PDA for $86 each in protean cost • Fix cost argon estimated to run $3 million per year. Estimated sales volume for the undermentioned quintuple old age is: | grade 1 | course of instruction 2 | form 3 |Year 4 |Year 5 | |70,000 |80,000 |100,000 |85,000 |75,000 | • social unit price for the new PDA go forth be $250 • The necessary equipment mass be pur chased for $15 million and will be depreciated on a 7-year MACRS schedule. The value of the equipment in five years will be $3 million. • crystallise working Capital for the PDA will be 20% of sales. • Conch Republic has a 35% corporate evaluate rate and a 12 % required return. Questions: 1. What is the payback limit of the project?

|Year |Unit Sales | | | |Projected Revenues | |1 |70,000 | |! | |Year |Revenues | |2 |80,000 | | | |1 |$17,500,000 | |3 |100,000 | | | |2 |20,000,000 | |4 |85,000 | | | |3 |25,000,000 | |5 |75,000 |...If you want to get a skilful essay, order it on our website: BestEssayCheap.com

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