I need this question answered in the format of the last photo. I havent been able to understand how to get the numbers for sales either. I was told sales was new sales - loss sales- loss revenue by my professor.

MINICASE nch Republic Electronics, Part 1 be pur seven- Conch Republic Electronic facturer located in Key is Shelley Couts, who inberi equipr As tures pecte not in and of th of $ Rep bali Flectronics is a midsized electronics manu- cated in Key West, Florida. The company president Couts, who inherited the company. When it was nded over 70 years ago, the company originally repaired dies and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a re- cent MBA graduate, has been hired by the company's finance department. One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch Republic currently has one smartphone model on the market, and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technol- ogy changes rapidly, and the current smartphone has limited Teatures in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smartphone that has all the features of the existing smartphone but adds new features such as WiFi tethering. The company has spent ther $200,000 for a marketing study to determine the ex- istin pric Net of the cha sale a re TO pected sales figures for the new smartphone. nch Republic can manufacture the new smartphones for in variable costs. Fixed costs for the operation are run $6.4 million per year. The estimated sales $ 155,000, 165,000, 125,000, 95,000, and 75,000 per ext five years, respectively. The unit price of the martphone will be $535. The necessary equipment ca S220 each in variable estimated to run $6.4 mill volume is 155,000, year for the next five years, new smartphone 349 art 1 sed for $43.5 million and will be depreciated on a CRS schedule. It is believed the value of the cs manu- president en it was repaired years, the reputable nless, a re- 's finance mufactured c currently have been comes in a play Jimmy mm, technol- has limited ch Republic smartphone ne but adds my has spent be purchased for $43.5 seven-year MACRS schedule. It is believed the equipment in five years will be $6.5 million As previously stated, Conch Republic currently manufac- tures a smartphone. Production of the existing model is ex- pected to be terminated in two years. If Conch Republic does not introduce the new smartphone, sales will be 95,000 units and 65,000 units for the next two years, respectively. The price of the existing smartphone is $385 per unit, with variable costs of $145 each and fixed costs of $4.3 million per year. If Conch Republic does introduce the new smartphone, sales of the ex- isting smartphone will fall by 30,000 units per year, and the price of the existing units will have to be lowered to $215 each. Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year, for example, there is no initial outlay for NWC, but changes in NWC will first occur in Year 1 with the first year's sales. Conch Republic has a 21 percent corporate tax rate and a required return of 12 percent. Shelley has asked Jay to prepare a report that answers the following questions. mine the ex- artphones for -operation are mimated sales od 75.000 per it price of the QUESTIONS 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? equipment can NH5U Book4 Home Insert Draw Page Layout Formulas Data Review WA Clipboard Font Alignment Conditional Formatting Format as Table Cell Styles Number A17 x fx 1 Conch Republic Electronics N w Year 1 Year 2 Year 3 Year 4 Year 5 o 5 Sales 6 Sales 7 Variable Cost 8 Fixed Cost 19 Depreciation 10 EBIT 11 Tax 12 Net Income 13 Add: Depreciation 14 OCF red 000 000 000 3.93 3550 450