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I meed help wjth these teo questioms MINICASE Conch Republic Electronics, Part 2 Shelley Couts, the owner of Couch Republic Electronics, has received the capital
I meed help wjth these teo questioms
MINICASE Conch Republic Electronics, Part 2 Shelley Couts, the owner of Couch Republic Electronics, has received the capital budgeting analysis from Jay McCanless for the new smartphone the company is considering. Shelley is pleased with the results, but she still has concerns about the new smartphone. Conch Republic has used a small market research firm for the past 20 years, but recently the founder of that firm has retired. Because of this Shelley is not convinced the sales projections presented by the market research firm are entirety accurate. Additionally, because of rapid changes in technology. she is concerned that a competitor may enter the market. This would likely force Conch Republic to lower the sales price of its new smartphone. For these reasons, she has asked Jay to malyze how changes in the price of the new smartphone and changes in the quantity sold will affect the NPV of the project Shelley has asked Iny to prepare a memo answering the following questions, QUESTIONS 1. How sensitive is the NPV to changes in the price of the new smartphone? 2. How sensitive is the NPV to changes in the quantity sold of the new wartphone Step by Step Solution
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