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Conch Republic Electronics, Part 2 Shelley Couts, the owner of Conch Republic Electronics, had has asked Jay to analyze how changes in the price of

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Conch Republic Electronics, Part 2 Shelley Couts, the owner of Conch Republic Electronics, had has asked Jay to analyze how changes in the price of the new received the capital budgeting analysis from Jay McCanless smart phone and changes in the quantity sold will affect the for the new smart phone the company is considering. Shelley NPV of the project. was pleased with the results, but she still had concerns about Shelley has asked Jay to the new smart phone. Conch Republic had used a small market following questions. research firm for the past 20 years, but recently the founder of that firm retired. Because of this, she was not convinced the sales projections presented by the market research firm were entirely accurate. Additionally, because of rapid changes in 1. How sensitive is the NPV to changes in the price of the technology, she was concerned that a competitor could enter the market. This would likely force Conch Republic to lower 2. How sensitive is the NPV to changes in the quantity sold prepare a memo answering the QUESTIONS new smart phone? the sales price of its new smart phone. For these reasons, she of the new smart phone? Conch Republic Electronics, Part 2 Shelley Couts, the owner of Conch Republic Electronics, had has asked Jay to analyze how changes in the price of the new received the capital budgeting analysis from Jay McCanless smart phone and changes in the quantity sold will affect the for the new smart phone the company is considering. Shelley NPV of the project. was pleased with the results, but she still had concerns about Shelley has asked Jay to the new smart phone. Conch Republic had used a small market following questions. research firm for the past 20 years, but recently the founder of that firm retired. Because of this, she was not convinced the sales projections presented by the market research firm were entirely accurate. Additionally, because of rapid changes in 1. How sensitive is the NPV to changes in the price of the technology, she was concerned that a competitor could enter the market. This would likely force Conch Republic to lower 2. How sensitive is the NPV to changes in the quantity sold prepare a memo answering the QUESTIONS new smart phone? the sales price of its new smart phone. For these reasons, she of the new smart phone

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