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Solve all the questions FINC 3304: Business Finance Mini Project 2 - Capital Budgeting due 11/21/21) Instructor: Dr. Narif Darna: Mini Project Instructions i You
Solve all the questions
FINC 3304: Business Finance Mini Project 2 - Capital Budgeting due 11/21/21) Instructor: Dr. Narif Darna: Mini Project Instructions i You have to use Microsoft Excel to sole this assignment and somit (aplood) Excel file into Plockland. Excel Notes : se End to actually calculate numere rol Netheless, to show the procedure will be clearly identify the names of your mobile oth input and set inte formule is needed, please type it near your input idle Highlight or put a lot around your main et pour name and date on a title page Please find the attached template XL file (Capital Budgeting.xax). Renate Sot the chapter de or contact me diretly with your questions CAPITAL BUDGETING Couch Republic Electronics is a midered electronic located in Key West, Fl. The company president i Shelly Coats, who inherited that coup. The compagnally repaired on and other household appliances when it was founded over 10 years ago. Over the years, the company he expanded and it is now a reputable manufacturer of various specialty electrode itens. Jay McCaules, a recent MBA graduate how been hired by the company in its findet One of the major revene-producing items faced by Couch Republic is a smart phone. Coach Hepublic Currently has one att phone model on the market and we have been excellent. The phone is a unique item in that it comes in a variety of tropical colors and is peegegned to play Jimmy Buffett musie. Howrs, as with any electronic item, technology changes rapidly, and the current smart phone has limited fratures in comparison with bewer models. Coach Republic spent $300,000 to develop a prototype for best phone that has all the features of the existing our but de ew feature as witi tethering. The company has spent after $200,000 for a marketing study to determine the expected sales figures for the smartphone Couch Republic contact the smartphone for $170 cahin variable costs Fonts for the operation we estimated to run $2.5 million per year. The estimated sales volume is 73.000, 85,000,000, 87.000 and 50,000 per year for the next five years, respectively. The price of the ple will be 80. The map can be purchased for $13.5 million and will be depreciated on your MACRS school. It is believed the value of the equipment in five years will be 1.2 million Net working capital for the start plates will be it post of watyeat wala Concha Republic has a 33 petent corporate tax rate and required return of 11 per Shelly has asked Jay to perpara rrport that we the followine gratis 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 6. Performansitivity analysis for the price of the west pler. Mewne the effects on NPV by towing price 5% up and down. 6 Performa susitivity stalysis for the panttity of pibes sold. Muse the effects on NPV by turning qonitity Spaldown 7. Should Couch Republic perduce the smart phone? & Suppore Conch Republieke sales on other models because of the introduction of the new model. How would this affect your analysis FINC 3304: Business Finance Mini Project 2 - Capital Budgeting due 11/21/21) Instructor: Dr. Narif Darna: Mini Project Instructions i You have to use Microsoft Excel to sole this assignment and somit (aplood) Excel file into Plockland. Excel Notes : se End to actually calculate numere rol Netheless, to show the procedure will be clearly identify the names of your mobile oth input and set inte formule is needed, please type it near your input idle Highlight or put a lot around your main et pour name and date on a title page Please find the attached template XL file (Capital Budgeting.xax). Renate Sot the chapter de or contact me diretly with your questions CAPITAL BUDGETING Couch Republic Electronics is a midered electronic located in Key West, Fl. The company president i Shelly Coats, who inherited that coup. The compagnally repaired on and other household appliances when it was founded over 10 years ago. Over the years, the company he expanded and it is now a reputable manufacturer of various specialty electrode itens. Jay McCaules, a recent MBA graduate how been hired by the company in its findet One of the major revene-producing items faced by Couch Republic is a smart phone. Coach Hepublic Currently has one att phone model on the market and we have been excellent. The phone is a unique item in that it comes in a variety of tropical colors and is peegegned to play Jimmy Buffett musie. Howrs, as with any electronic item, technology changes rapidly, and the current smart phone has limited fratures in comparison with bewer models. Coach Republic spent $300,000 to develop a prototype for best phone that has all the features of the existing our but de ew feature as witi tethering. The company has spent after $200,000 for a marketing study to determine the expected sales figures for the smartphone Couch Republic contact the smartphone for $170 cahin variable costs Fonts for the operation we estimated to run $2.5 million per year. The estimated sales volume is 73.000, 85,000,000, 87.000 and 50,000 per year for the next five years, respectively. The price of the ple will be 80. The map can be purchased for $13.5 million and will be depreciated on your MACRS school. It is believed the value of the equipment in five years will be 1.2 million Net working capital for the start plates will be it post of watyeat wala Concha Republic has a 33 petent corporate tax rate and required return of 11 per Shelly has asked Jay to perpara rrport that we the followine gratis 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 6. Performansitivity analysis for the price of the west pler. Mewne the effects on NPV by towing price 5% up and down. 6 Performa susitivity stalysis for the panttity of pibes sold. Muse the effects on NPV by turning qonitity Spaldown 7. Should Couch Republic perduce the smart phone? & Suppore Conch Republieke sales on other models because of the introduction of the new model. How would this affect your analysis Step by Step Solution
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