CHAPTER CASE Conch Republic Electronics

Prepare and excell spreadsheet and answer questions 1 to 8

1. What is the payback period of the project? 2. What is the profitability index of the project? 3. What is the IRR of the project? 4. What is the NPV of the project? 5. How sensitive is the NPV to changes in the price of the new smartphone? 6. How sensitive is the NPV to changes in the quantity sold? 7. Should Conch Republic produce the new smartphone? 8. Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis?