In Excel, create the amortization table for a 15-year mortgage for $780,000 at 6.6% interest.

Individual taxpayers may be able to deduct the amount of interest that they paid on a mortgage for a personal residence. If the mortgage was issued on July 1, how much interest will be earned in the first year?

How much interest will be earned in the second year?

Conch Republic Electronics

C

onch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its 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, technology changes rapidly, and the current smartphone has limited features 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 one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

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 (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 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

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?

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its 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, technology changes rapidly, and the current smartphone has limited features in comparison with new models. Conch Republic spent $1.2 million to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as Wifi tethering. The company has spent a further $250,000 for a marketing study to determine the expected sales figures for the new smartphone. Conch Republic can manufacture the new smartphone for $210 each in variable costs. Fixed costs for the operation are estimated to run $5.3 million per year. The estimated sales volumes are 64,000, 106,000, 87,000, 78,000, and 54,000 per year for each of the next five years, respectively. The unit price of the new smartphone will be $515. The necessary equipment can be purchased for $38.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.8 million. 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 (i.e., there is no initial outlay for NWC). Changes in NWC thus will occur first in year 1 with the first year’s sales. Conch Republic has a 22 percent corporate tax rate and a required return of 12 percent. Shelly has asked Jay to prepare a report that answers the following questions:

10) How sensitive is the NPV to changes in the price of the new smartphone?

11) How sensitive is the NPV to changes in the quantity sold?

12) Should Conch Republic produce the new smartphone?

CHAPTER CASE

Conch Republic Electronics

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its 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, technology changes rapidly, and the current smartphone has limited features 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 one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

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 (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 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

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?

*****PLEASE SHOW YOUR WORK

In Mary Pardo’s “Grassroots Activism: Mothers of East Los Angeles” the author links the social networks of women and their _______-based responsibilities to political resources.

The theme of individual differences has been prominent throughout this book. However, some researchers argue that individual differences increase during our lives.

What are the trends with respect to the gender ratio for psychology Ph.D. degrees? What is the current gender ratio for the psychology faculty and for psychology majors at your own college or university? Why might the changing gender ratio help the women’s movement??

The students in University of Glasgow have done public survey and 200 people involved to the survey. It is proved that, 110 out of 200 people wish to get their master degrees in Us Universities. Compute the probability of randomly selected 7 students at least 6 of them wish to apply to US universities for their master degrees (according to the public survey)?

What is a goal of human therapeutic cloning?

to transfer cells from an unrelated individual into a patient needing a transplant

to create pluripotent cells for medical research only

to make a new individual, who is genetically identical to a patient needing a transplant

to create pluripotent stem cells using a patient’s nucleus

to extract ES cells from an embryo

Consider the following scenario. Suppose that the free-trade price of a ton of steel is €500. Finland, a small country, imposes a €60-per-ton specific tariff on imported steel. With the tariff, Finland produces 300,000 tons of steel and consumes 600,000 tons of steel. As compared with free trade, steel production has risen by ½ while steel consumption fallen by 1/7.

(1) Draw a picture of Finland’s domestic market to illustrate this scenario. Please label all prices and quantities under free-trade and under the tariff.

(2). The tariff makes Finnish steel producers better off.

(3). The tariff makes Finnish steel consumers better off.

A random sample of 19 wolf litters in Ontario, Canada, gave an average of x₁ = 5.6 wolf pups per litter, with estimated sample standard deviation s₁ = 1.1. Another random sample of 6 wolf litters in Finland gave an average of x₂ = 3.8 wolf pups per litter, with sample standard deviation s₂ = 1.0.

(a) Categorize the problem below according to parameter being estimated, proportion p, mean μ, difference of means μ₁ – μ₂, or difference of proportions p₁ – p₂. Then solve the problem.

μ₁ – μ₂

μ

p₁ – p₂

p

(b) Find an 99% confidence interval for μ₁ – μ₂, the difference in population mean litter size between Ontario and Finland. (Use 1 decimal place.)

(c) Examine the confidence interval and explain what it means in the context of this problem. Does the interval consist of numbers that are all positive? all negative? of different signs? At the 99% level of confidence, does it appear that the average litter size of wolf pups in Ontario is greater than the average litter size in Finland?

Because the interval contains only positive numbers, we can say that the average litter size of wolf pups is greater in Ontario.

Because the interval contains both positive and negative numbers, we can not say that the average litter size of wolf pups is greater in Ontario.

   We can not make any conclusions using this confidence interval.

Because the interval contains only negative numbers, we can say that the average litter size of wolf pups is greater in Finland.