Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. One of the major revenue-producing items manufactured by Conch Republic is a Personal Digital Assistant (PDA). Conch Republic currently has PDA model on the market and sales have been excellent. The PDA is a unique item in that it comes in a variety of tropical colors ad is preprogrammed to play Jimmy Buffett music. However as with any electronic item, technology changes rapidly, and the current PDA has limited features in comparison with newer models. Conch republic spent $750,000 to develop a prototype for a new PDA that has all the features of the existing one, but adds new features such as cell phone capability. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new PDA. Conch republic can manufacture the new PDA for $220 each in variable costs. Fixed costs for the operation are estimated to run $6.4 million per year. The estimated sales volume is 155,000, 165,000, 125,000, 95,000, and 75,000 per year for the next five years, respectively. The unit price of the new PDA will be $535. The necessary equipment can be purchased for $43.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $4.3 million. Net working capital for the PDAs will be 20% of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Conch Republic has a 21% corporate tax rate and a 12% required return. Shelly has asked Jay to prepare a report that answers the following questions. Answer the questions below and make sure to show all work that led up to your answer. Include Excel Spreadsheet. 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 5. How sensitive is the NPV to changes in the price of the new smartphone? 6.How sensitive is the NPV to changes in the quantity sold of the new phone?

Show work and explain how you got your answer, do not just post an excel spreadsheet with answers please.

You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of

$ 10.3

million. Investment A will generate

$ 2.18

million per year​ (starting at the end of the first​ year) in perpetuity. Investment B will generate

$ 1.51

million at the end of the first​ year, and its revenues will grow at

2.2 %

per year for every year after that.

a. Which investment has the higher​ IRR?

b. Which investment has the higher NPV when the cost of capital is

7.8 %

​?

c. In this​ case, for what values of the cost of capital does picking the higher IRR give the correct answer as to which investment is the best​ opportunity?

Sara purchased 50 shares of Apple stock at $190.97 per share using the prevailing minimum initial margin requirement of 55%.

She held the stock for exactly 4 months and sold it without any brokerage costs at the end of that period. During the 4​-month holding​ period, the stock paid $1.49 per share in cash dividends.

Sara was charged 4.8% annual interest on the margin loan. The minimum maintenance margin was 25%.

a. Calculate the initial value of the​ transaction, the debit balance​, and the equity position on​ Sara's transaction. Round to the nearest cent

b. For each of the following share​ prices, calculate the actual margin​ percentage, and indicate whether​ Sara's margin account would have excess​ equity, would be​ restricted, or would be subject to a margin​ call: ​(1)$174.81​, (2)$206.54​,and​(3)$122.35. Round to the nearest .001%

c. Calculate the dollar amount of​ (1) dividends received and​(2) interest paid on the margin loan during the 4​-month holding period. Round to the nearest cent

d. Use each of the following sale prices at the end of the 4​-month holding period to calculate​ Sara's annualized rate of return on the Apple stock​ transaction: (1)$185.83​, (2) $195.99​, and​ (3)$205.89. Round to the nearest .001%

Using your mortgage schedule spreadsheet, enter the following data: Cost of Home: $225,000 Down Payment: $15,000 Annual Interest Rate: 6.960% Number of Years: 25 In addition, enter $400 as an additional principal payment for month 36 and $100 as an additional principal payment for month 75. Copy the monthly closing balance from month 52 into this question's response box AFTER you ensure that it is formatted using accounting formatting and 2 decimal places.

Use the financial statements below for problems 4 to 7

                              Balance Sheet

4.   Construct a common size balance sheets for 2017 and 2018. Comment on any changes in the percentages of assets and liabilities.

5.   Construct a common size income statement 2017 and 2018. Comment on any of the changes in the composition of the income statement.

As director of capital budgeting, you are reviewing three potential investment projects with the following cost and cash flow projections.

1.Calculate the Payback Period for each project.

2.If the discount rate for all three projects is 10.5%, calculate the Net Present Value for each project.

Cruz Corporation has $100 billion of debt outstanding. An otherwise identical firm has no debt and has a market value of $450 billion. Under the Miller model, what is Cruz’s value if the federal-plus-state corporate tax rate is 28%, the effective personal tax rate on stock is 17%, and the personal tax rate on debt is 29%? Enter your answer in billions. For example, an answer of $1.23 billion should be entered as 1.23, not 1,230,000,000. Round your answer to two decimal places.

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $ 46,200 Costs 34,200 Taxable income $ 12,000 Taxes (30%) 3,600 Net income $ 8,400 Dividends $ 2,800 Addition to retained earnings 5,600 The balance sheet for the Heir Jordan Corporation follows. Based on this information and the income statement, supply the missing information using the percentage of sales approach. Assume that accounts payable vary with sales, whereas notes payable do not. (Leave no cells blank - be certain to enter "0" whenever the item is not a constant percentage of sales. Enter each answer as a percent rounded 2 decimal places, e.g., 32.16.) HEIR JORDAN CORPORATION Balance Sheet Percentage of Sales Percentage of Sales Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 2,450 Accounts payable $ 4,000 Accounts receivable 4,000 Notes payable 8,400 Inventory 9,000 Total $ 15,450 Total $ 12,400 Long-term debt $ 21,000 Owners’ equity Common stock and paid-in surplus $ 14,000

Retained earnings 5,650 Fixed assets Net plant and equipment $ 37,600 Total $ 19,650 Total assets $ 53,050 Total liabilities and owners’ equity $ 53,050

Bird's Eye Treehouses, Inc., a Kentucky company, has determined that a majority of its customers are located in the Pennsylvania area. Therefore, it is considering using a lockbox system offered by a bank located in Pittsburgh. The bank has estimated that use of the system will reduce collection time by 2 days. Average number of payments per day 870 Average value of payment $ 820 Variable lockbox fee (per transaction) $ .20 Annual interest rate on money market securities 4.6 % a. What is the NPV of the new lockbox system? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. Suppose in addition to the variable charge that there is an annual fixed charge of $4,000 to be paid at the end of each year. What is the NPV now? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) (please explain)