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Posted on Jul 26, 2024

from information found below we have to come up with irr and npv for company and if should invest in new smartphone. please reply with

from information found below we have to come up with irr and npv for company and if should invest in new smartphone. please reply with 100 or more words image text in transcribed

Net pr all of the finanicals for Conch Republic Electronics, I believe that they should invest in a new smart phone The reasons they should do this is the NPV is 48201872.53... which is a lot higher than it has to be to be basically profitable. The company stated that to be successful they only need a rate of 12%, with this being highly over it is clear they should invest in the new smart phone. I had to do a lot of calculations to arrive at the final point-they shoudl invest. First thing was colletecing the cash flows for all 5 years. Using initial investment, sales volume, price per unit, total saled, variable cost,etc., Next thing was calculating the MARC Depreciation using the opening balance, depreciation, and closing balance. The Pl index is 2.108090 . Then taking salavage value, book value after 5 years, tax, etc. Arriving at the payback period using the cash flows for all 5 years and the cummulative cash flows in all 5 years. Finally calculating IRR, PI Index, NPV.. Using the Cash Flow, PV, and present value. presen invest: het pre presen investr result i only in In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. Present value (PV) is the current value of a future sum of money or stream of cash flow given a specified rate of return. Meanwhile, net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time $ (43,500,000.00) 125,000 165,000 535 88,275,000 535 95.000 535 50.625.000 66,875,000 155,000 535 82.925,000 220 34,100,000 5,400,000 220 220 220 27.500.000 5,400,000 20,900,000 5,400.000 0 0 Initial Investment Sales volume Sales Price Per Unit Total sales Variable Cost Per Unit Less: variable cost Less: fixed cost Depreciation rates Less: depreciation Eamings before tax Less: Tax (21%) Eaming after tax Add: Depreciation Operating cash flow Less: net working Changes in NWC Add: recovered capital Add: After tax salvage value Cash flows 643,050 42.781,950 8.984,210 33.797.741 643,050 34,440,791 16,585,000 1,070,000 36,300.000 5,400,000 BLO 10,653.150 35.921.850 7,543.589 28,378,262 10,653.150 39,031,412 17,655,000 (4,280,000) 7,608,150 26,366,850 5,537,039 20,829.812 7,608,150 28,437,962 13,375,000 (3,210,000) 5.433.150 19.091.850 4,009,289 15,082,562 5,433,150 20,515,712 10,165,000 (2.140.000) You c 75,000 While 535 40,125,000 estima 220 still pr 16,500,000 5,400,000 profita energy 3,884,550 14.340,450 expand 3,011,495 is likel 11,328,956 3,884,550 15.213,506 IRR is 8,025,000 allocata $ 65,805,000.00 pwn sto 7 2993505.5 capital 21376411.5 150629615 103507115 MACR Depreciation Opening Balance Depreciation Closing Balance 0.1429 $ 43,500,000.00 $ 6,226,150.00 $ 37.283.850.00 0.2449 37,283,850 9,130.815 28.153,035 0.1749 28.153.035 4,923,966 23.229,069 0.1249 23,229.069 2.901.311 20.327,759 0.0893 $ 20.327.758.54 $ 1,815.268.84 $ 18,512,489.70 Net pre present investm het pres present investm result in pnly iny Initial Cost Salvage Value Book Value Year 5 Capital Loss Less: Tax on capital After tax salvage 43,500,000.00 6.500.000 18,512.490 (12.012,490) (2.522,623) 9,022,622.84 Year Cash Flow Cumulative Cash Flow 05 (43,500,000.00) $ (43,500,000.00) 17.855.791 (25,644,210) 21,376,412 (4.267.798) 15,062.962 10,795,164 10.350,712 21.145 875 72,993,506 94.139.381 Cash flows 43500000 17855790.5 13764115 15062961.5 10350711.5 72993505.5 MACR Depreciation Opening Balance Depreciation Closing Balance 0.1429 $ 43,500,000.00 $ 6,216,150.00 $ 37.283.850.00 0.2449 37,283,850 9,130,815 28,153,035 0.1749 28.153.035 4,923,966 23,229,069 0.1249 23,229,069 2,901,311 20,327.759 0.0893 $ 20,327.758.54 $ 1,815,268.84 $ 18.512.489.70 Par Initial Cost Salvage Value Book Value Year 5 Capital Loss Less: Tax on capital After tax salvage 43,500,000.00 6,500,000 18.512,490 (12.012.490) (2.522,623) 9.022.622.84 Nor pre: Year Cash Flow Cumulative Cash Flow 0 $ (43,500,000.00) (43,500,000.00) 17.855.791 (25,644,210) 21.376,412 (4,267.798) 15,062,962 10,795,164 10,350,712 21.145.875 72.993,506 94.139.381 Payback Period inve het pres inve resu only PV Cash flow 0$ (43,500,000.00) 17.855.791 21.376,412 15,062,962 10.350.712 72.993,505.50 $ Present Value 1.00 $ (43,500,000.00) 15,942,670 17,041,144 10.721,518 6,578.064 0.57 $ 41.418.475 31 Pl Index NPV 2.1080890236 48204822426762 Net pr all of the finanicals for Conch Republic Electronics, I believe that they should invest in a new smart phone The reasons they should do this is the NPV is 48201872.53... which is a lot higher than it has to be to be basically profitable. The company stated that to be successful they only need a rate of 12%, with this being highly over it is clear they should invest in the new smart phone. I had to do a lot of calculations to arrive at the final point-they shoudl invest. First thing was colletecing the cash flows for all 5 years. Using initial investment, sales volume, price per unit, total saled, variable cost,etc., Next thing was calculating the MARC Depreciation using the opening balance, depreciation, and closing balance. The Pl index is 2.108090 . Then taking salavage value, book value after 5 years, tax, etc. Arriving at the payback period using the cash flows for all 5 years and the cummulative cash flows in all 5 years. Finally calculating IRR, PI Index, NPV.. Using the Cash Flow, PV, and present value. presen invest: het pre presen investr result i only in In finance, the net present value or net present worth applies to a series of cash flows occurring at different times. The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. Present value (PV) is the current value of a future sum of money or stream of cash flow given a specified rate of return. Meanwhile, net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time $ (43,500,000.00) 125,000 165,000 535 88,275,000 535 95.000 535 50.625.000 66,875,000 155,000 535 82.925,000 220 34,100,000 5,400,000 220 220 220 27.500.000 5,400,000 20,900,000 5,400.000 0 0 Initial Investment Sales volume Sales Price Per Unit Total sales Variable Cost Per Unit Less: variable cost Less: fixed cost Depreciation rates Less: depreciation Eamings before tax Less: Tax (21%) Eaming after tax Add: Depreciation Operating cash flow Less: net working Changes in NWC Add: recovered capital Add: After tax salvage value Cash flows 643,050 42.781,950 8.984,210 33.797.741 643,050 34,440,791 16,585,000 1,070,000 36,300.000 5,400,000 BLO 10,653.150 35.921.850 7,543.589 28,378,262 10,653.150 39,031,412 17,655,000 (4,280,000) 7,608,150 26,366,850 5,537,039 20,829.812 7,608,150 28,437,962 13,375,000 (3,210,000) 5.433.150 19.091.850 4,009,289 15,082,562 5,433,150 20,515,712 10,165,000 (2.140.000) You c 75,000 While 535 40,125,000 estima 220 still pr 16,500,000 5,400,000 profita energy 3,884,550 14.340,450 expand 3,011,495 is likel 11,328,956 3,884,550 15.213,506 IRR is 8,025,000 allocata $ 65,805,000.00 pwn sto 7 2993505.5 capital 21376411.5 150629615 103507115 MACR Depreciation Opening Balance Depreciation Closing Balance 0.1429 $ 43,500,000.00 $ 6,226,150.00 $ 37.283.850.00 0.2449 37,283,850 9,130.815 28.153,035 0.1749 28.153.035 4,923,966 23.229,069 0.1249 23,229.069 2.901.311 20.327,759 0.0893 $ 20.327.758.54 $ 1,815.268.84 $ 18,512,489.70 Net pre present investm het pres present investm result in pnly iny Initial Cost Salvage Value Book Value Year 5 Capital Loss Less: Tax on capital After tax salvage 43,500,000.00 6.500.000 18,512.490 (12.012,490) (2.522,623) 9,022,622.84 Year Cash Flow Cumulative Cash Flow 05 (43,500,000.00) $ (43,500,000.00) 17.855.791 (25,644,210) 21,376,412 (4.267.798) 15,062.962 10,795,164 10.350,712 21.145 875 72,993,506 94.139.381 Cash flows 43500000 17855790.5 13764115 15062961.5 10350711.5 72993505.5 MACR Depreciation Opening Balance Depreciation Closing Balance 0.1429 $ 43,500,000.00 $ 6,216,150.00 $ 37.283.850.00 0.2449 37,283,850 9,130,815 28,153,035 0.1749 28.153.035 4,923,966 23,229,069 0.1249 23,229,069 2,901,311 20,327.759 0.0893 $ 20,327.758.54 $ 1,815,268.84 $ 18.512.489.70 Par Initial Cost Salvage Value Book Value Year 5 Capital Loss Less: Tax on capital After tax salvage 43,500,000.00 6,500,000 18.512,490 (12.012.490) (2.522,623) 9.022.622.84 Nor pre: Year Cash Flow Cumulative Cash Flow 0 $ (43,500,000.00) (43,500,000.00) 17.855.791 (25,644,210) 21.376,412 (4,267.798) 15,062,962 10,795,164 10,350,712 21.145.875 72.993,506 94.139.381 Payback Period inve het pres inve resu only PV Cash flow 0$ (43,500,000.00) 17.855.791 21.376,412 15,062,962 10.350.712 72.993,505.50 $ Present Value 1.00 $ (43,500,000.00) 15,942,670 17,041,144 10.721,518 6,578.064 0.57 $ 41.418.475 31 Pl Index NPV 2.1080890236 48204822426762