World Enterprises is determined to report earnings per share of $2.67. It therefore acquires the Wheelrim and Axle Company. You are given the following facts:

There are no gains from merging. In exchange for Wheelrim and Axle shares, World Enterprises issues just enough of its own shares to ensure its $2.67 earnings per share objective.

C. What is the cost of the merger to World Enterprises? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to the nearest whole number.)

Cost of merger            $

d. What is the change in the total market value of the World Enterprises shares that were outstanding before the merger? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)

Change in share value            $

#Question 1A

Sweet Coco Corporation (SCC) is contemplating the acquisition of Salty Pretzels (SP). The Value of the two companies as separate entities is $20 million and $10 million, respectively. SCC estimates that by combing the two companies, it will generate additional revenue of $1 million and reduce operating costs of $500,000 per year in perpetuity. SCC is willing to pay $20 million in cash for Salty Pretzels. Assuming the opportunity cost of capital is 8%.

1) What is the Gain of the merge?

2)what is the cost of the cash offer?

3)What is the net present value (NPV) of the acquisition under the cash offer?

#Question 2A

Suppose that instead of making a cash offer, Sweet Coco Corporation considers offering Salty Pretzels' shareholders a 50% holding in Sweet Coco Corporation.

1) What is the value of the stock in the merged company held by the original Salty Pretzels shareholders?

2)What is the cost of the stock alternative?

3)What is the merger's net present value (NPV) under the stock offer?

#Question 3A

Currently, you are working as a finance manager in Sweet Coco Corporation, Which strategy will you recommend to the board of directors? Justify your suggestion.

i need a conclusion for my paper on ADHD. I need this asap please have to turn my paper in one hour!!!! thank you

           In the recent times, ADHD is being seen in the light of cerebral dysfunction with too much focus on clinical treatment using medication at the same time keeping psychotherapy at bay which shows a dangerous trend. Psychotherapy even though cannot explain the cause of the condition, but it can help the children in coping his emotions and can help throw light in the inner world the child is experiencing which could be very fruitful to the child. Psychoanalytic and psychodynamic therapies are used where the specialist interpret the thoughts of the child to understand the challenge faced by the child.
            One of the most common neuro-behavioral disorders seen in children is Attention deficit disorder and is responsible for problems like lack of attention, hyperactivity, impulsiveness etc. If such conditions are not given attention at a younger age, the children may end up being a threat to self and the society with their social cut off status. It was found that a treatment is required for the same and after the completion of the treatment and therapy, intervention by parents and support in cognitive therapy is very important. There are many things that impact and help with long-term benefits of neurobehavioral development.

             The early experiences of a child, interpersonal relations etc. are all important in shaping up the mind and progress it in the right direction. There are two things which can impact long-term mental benefit to the patient which includes empathy and transference. The therapist must be able to build a very strong relationship with the patient to bring out a successful result. The early relationship of a child with parents and the surrounding contributes greatly in shaping up the mind and brain. The caregivers help in healthy development of the brain as they can respond to a child’s greatness and perfection. Apart from that, one must be able to maintain a sense of calmness and perseverance with the child.

           It is very important to first decode the nature of the child and they must be allowed to enjoy the fruit of childhood. They must be able to comprehend with reality but in a sensitive manner. There are few ways by which therapeutic relations help in changing the behavior and mindset, Mirroring transference is one way where the patient is attached to the therapist and same is reciprocated from the therapist side. Idealizing transference is one way where the patient regards the therapist as perfect through the built connection and hence patient starts to feel powerful. Twinship transference is another one where patient desires to feel the essential connection with the therapist.

            Hence no matter what, the therapeutic relations are very important for maintaining an excellent therapy session. The therapist initially tries to build a stronger bond with help of empathy. It is of two types which intellectual empathy that involves awareness and accurate understanding of the patient and compassionate empathy which involves being kind and compassionate through the thoughts of the patient. Empathy plays a very important role in treating ADHD in children as it helps the child to come out of their cocoon and see the world in a better way.

             Empathy helps in treating a wide array of emotions like anger, sadness, non-attentiveness, impulsive behavior etc. It helps in understanding the patient and their emotions. Empathy is basically putting you in their shoes and understanding their state of mind. It helps in building alliances with the patient and plan a therapy for long-term benefit. it is important to establish an understanding of the patient’s mind before undergoing any sort of therapy and treatment. Parents intervention and the healthy surrounding atmosphere is equally important.

                ADHD is among the most common neurobehavioral disorders presenting for treatment in children. It carries a high rate of comorbid psychiatric problems such as oppositional defiant disorder (ODD), conduct disorder, mood and anxiety disorders, and cigarette and substance use disorders. Across the lifespan, the social and societal costs of untreated ADHD are considerable, including academic and occupational underachievement, delinquency, motor vehicle safety, and difficulties with personal relationships.

                ADHD affects an estimated 4% to 12% of school-aged children worldwide with survey and epidemiologically derived data showing that 4 to 5% of college-aged students and adults have ADHD. In more recent years, the recognition and diagnosis of ADHD in adults have been increasing although treatment of adults with ADHD continues to lag substantially behind that of children. In contrast to a disproportionate rate of boys diagnosed with ADHD relative to girls in childhood, in adults, an equal number of men and women with ADHD are presenting for diagnosis and treatment.

              ADHD can be reliably diagnosed in children, adolescents, and adults. Using the current guidelines, the child or adult patient must meet the criteria in the Diagnostic and Statistical Manual of Mental Disorders (DSM-IV-TR). The symptoms of the disorder are categorized as follows: inattention-difficulty sustaining attention and mental effort, forgetfulness, and distractibility; hyperactivity-fidgeting, excessive talking, and restlessness; and impulsivity-difficulty waiting for one’s turn and frequent interruption of others. The DSM-IV-TR criteria also include onset by age 7, impaired functioning in at least 2 settings (home, work, school, job), and more than 6 months of duration 30.

             ADHD has been conceptualized as a disorder affecting “frontal” circuitry due to associated deficits in executive cognitive functioning. A structural magnetic resonance imaging (MRI) study in adults with and without ADHD also revealed a smaller anterior cingulate cortex (ACC) and dorsolateral prefrontal cortex (DLPFC).

            ADHD is among the most recognized genetic-based disorders in psychiatry. Family studies of ADHD have shown that the relatives of ADHD children are at high risk for ADHD, comorbid psychiatric disorders, school failure, learning disability and impairments in intellectual functioning. Additional lines of evidence from twin, adoption, and segregation analysis studies suggest that the familial aggregation of ADHD has a substantial genetic component. Twin studies find greater similarity for ADHD and components of the syndrome between monozygotic twins compared with dizygotic twins.

           The management of ADHD includes consideration of two major areas: non-pharmacological (educational remediation, individual, and family psychotherapy) and pharmacotherapy. Support groups for children and adolescents and their families, as well as adults with ADHD, provide an invaluable and inexpensive environment in which individuals can learn about ADHD and resources available for their children or themselves.

Specialized educational planning based on the child’s difficulties is necessary for most of the cases. Since learning disorders co-occur in one-third of ADHD youth, ADHD individuals should be screened, and appropriate individualized educational plans developed. Parents should be encouraged to work closely with the child’s school guidance counselor who can provide direct contact with the child as well as serve as a valuable liaison between teachers and school administrators.

             Clinicians have at their disposal a variety of psychosocial interventions for ADHD. Apart from traditional psychotherapy, which addresses underlying emotions, psychologists are available to help children develop strategies for improving academic performance and interpersonal relations. Psychiatrists can assist the child with skills in organization and prioritization, as well as act as mentors, advocates, and motivational figures. Parent training is often conducted using the antecedent behavior consequence model and is implemented using various methods, including small and large parent training groups, parent training with individual families, videotapes, and behavioral sessions that include children.

             The stimulant class medications are among first-line agents for pediatric and adult groups with ADHD based on their extensive efficacy and safety data the most commonly used compounds in this class include methylphenidate-based (Ritalin, Concerta, Focalin, Metadate, Daytrana and others) and amphetamine-based (Adderall, Dexedrine, Vyvanse) formulations. Stimulants are sympathomimetic drugs which increase intrasynaptic catecholamines (mainly dopamine and norepinephrine) by inhibiting the presynaptic reuptake mechanism and releasing presynaptic catecholamines. Whereas methylphenidate is specific for blockade of the dopamine and noradrenergic transporter proteins, amphetamines (in addition to blocking the dopamine and noradrenergic transporter protein) release catecholaminergic stores and cytoplasmic dopamine and noradrenaline directly into the synaptic cleft.

In your perspective, what would be the best ethical theory to analyze the case study "my family's honor? Please elaborate on why you think this way

My family’s Honor

My name is Charles, but my friends and family call me Chuck. I am the fifth child in a family of 7, three older sisters and an older brother before me, and a sister one a year younger and a brother 5 years younger than her. Due to the age difference between my sister and my little brother, jokes were told in family gatherings referring to my little brother as an “accident” or as “Ramses” making reference to a popular name brand of condoms implying that my mother had gotten pregnant because the Ramses Condoms were somehow damaged. At that time in my life, roughly 15 years old, I did not find these jokes or comments funny at all. Nevertheless, we had grown to know my little brother as Ramses for lack of a better nickname and he hated it even though I do not think he understood what it meant.

One warm summer afternoon, my little brother came home very angry. For days to follow, he did not want to talk about what was making him upset and seemed absent and sad. As the week came to an end, he was still obviously upset to the point that he refused to go to a football game that we had been planning to go for weeks. I did not understand what the problem was, but what I was about to find out, would make me reevaluate the meaning of the word “honor.”

A few weeks before this incident, a young Down Syndrome boy had been accepted into my brother school, fact that I was not aware of. Moved by a government “full integration” policy, schools were admitting what in those days were known as “non-traditional students”, a group that was composed by Down Syndrome, Autistic and other learning disabled children that up until that time had been going to special education centers out of the public eye. Thinking in retrospect, I personally had never been close or even seen a Down Syndrome child. The closest thing I remember was a boy who lived across the street who used to spy on us as we played in the street but never came out. Later on in life I found out that his name was Bobby and he had been the victim of a nasty disease known as Polio and thus confined to a wheel chair. Bobby was “home schooled” not because he had a learning disability, but probably because his parents tried to protect him from bullies and deep down inside they were possibly a bit ashamed of him.

After a while, my little brother (whose real name was David), decided to open up to me and told me the reasons why he had been upset in the past days. With tears in his eyes, David proceeded to narrate what he had been subjected to by kids in the school. He looked and me and said: Last Monday I went to school and some of the older kids were pointing at me and laughing. Before I knew it from the crowd I heard a voice yelling “Ramses, Ramses you mother can’t keep on her pantses.” In a macabre and cruel way of making fun of David by making up words to make a silly rhyme, they were implying that my mother was a whore who could not keep her pants on and thus, got pregnant with David. Never mind that my mother was married to my father and consequently she could not be labeled as a whore, I was enraged that this kids would have my mother in their stupid mouths. I was so upset about this that I told David that next time he saw the kid or kids who did this to him to point them out to me that I would make them pay. Keep in mind that David was around 8 years old at that time, so to him it was a huge deal to be reassured by his big brother that he was going to be protected.

Weeks went by without any incidents and then one afternoon as David and I were walking through the playground by our house, he saw the culprit of his ridicule. He seemed excited and nervous when he pointed out his “offender” in the distance. From that perspective the kid seemed big, even bigger than me at 15. Without thinking about it I ran towards him convinced that if I surprised him and hit first, I would have the advantage. Since the kid was walking away from him, I grabbed him by the collar of his shirt and swung him around. A right hook to his belly made him lose his air, a punch in the mouth and then another….. by this time all of the kids in the playground were surrounding me chanting “fight, fight, fight…” All I could think of was my mother’s honor….. never again would anyone dare calling my mother a whore…. I was blinded by rage as I continued to punch and kick. It was not long before someone grabbed me and pinned me down…. In my rage I heard a woman crying in desperation…… as I reclaimed by composure, I began to see what I had done.

On the ground, bleeding with what seemed a broken nose, and crying covering his face was this big kid…. The woman who had been crying, his mother, was trying to console him and as she helped him out my rage turned to horror as I realized the kid I had badly hurt was the Down Syndrome boy that had come to my brother’s school a few weeks ago. I learned his name was Christian and in an act of cruelty bigger than anything I had ever seen, had been bullied by the bigger kids into making fun of my brother. I had inflicted a lot of damage on this boy who had no understanding of what he was saying and I did not know what to say. In an attack of remorse, I too started to cry asking him to forgive him… I could not look at him or his mother, I had never in my short life felt so much remorse.

In an effort to regain my mother’s honor, I had attacked the wrong person, I had acted without thinking, I had committed an act of violence against someone who could not properly defend himself. What a shameful and coward act.

Time passed and we all got older. Christian was taken out of the school and we never heard anything from him. I got married and had children… 3 girls and a boy. Life sometimes likes to play cruel jokes on us and my boy was born with Down Syndrome. In a reconciliatory move, I named him Christian…. Not because I felt guilty anymore, but because I wanted to protect this little Christian and make sure that no bully ever took advantage of him. Today Christian is 10 years old. He is a mild case of Down Syndrome and the doctors seem to think that he will live a long and productive life. I cannot help however, to see the stares or the little boys pointing at him when we go to the playground. Today my honor is in making sure that my son will never be abused by anyone. Funny I should say this, but sometimes when I hold my Christian in my arms I still shed a tear of remorse for what I did to that poor boy many years ago.

My name is Charles, but my friends and family call me Chuck. I am the fifth child in a family of 7, three older sisters and an older brother before me, and a sister one a year younger and a brother 5 years younger than her. Due to the age difference between my sister and my little brother, jokes were told in family gatherings referring to my little brother as an “accident” or as “Ramses” making reference to a popular name brand of condoms implying that my mother had gotten pregnant because the Ramses Condoms were somehow damaged. At that time in my life, roughly 15 years old, I did not find these jokes or comments funny at all. Nevertheless, we had grown to know my little brother as Ramses for lack of a better nickname and he hated it even though I do not think he understood what it meant.

One warm summer afternoon, my little brother came home very angry. For days to follow, he did not want to talk about what was making him upset and seemed absent and sad. As the week came to an end, he was still obviously upset to the point that he refused to go to a football game that we had been planning to go for weeks. I did not understand what the problem was, but what I was about to find out, would make me reevaluate the meaning of the word “honor.”

A few weeks before this incident, a young Down Syndrome boy had been accepted into my brother school, fact that I was not aware of. Moved by a government “full integration” policy, schools were admitting what in those days were known as “non-traditional students”, a group that was composed by Down Syndrome, Autistic and other learning disabled children that up until that time had been going to special education centers out of the public eye. Thinking in retrospect, I personally had never been close or even seen a Down Syndrome child. The closest thing I remember was a boy who lived across the street who used to spy on us as we played in the street but never came out. Later on in life I found out that his name was Bobby and he had been the victim of a nasty disease known as Polio and thus confined to a wheel chair. Bobby was “home schooled” not because he had a learning disability, but probably because his parents tried to protect him from bullies and deep down inside they were possibly a bit ashamed of him.

After a while, my little brother (whose real name was David), decided to open up to me and told me the reasons why he had been upset in the past days. With tears in his eyes, David proceeded to narrate what he had been subjected to by kids in the school. He looked and me and said: Last Monday I went to school and some of the older kids were pointing at me and laughing. Before I knew it from the crowd I heard a voice yelling “Ramses, Ramses you mother can’t keep on her pantses.” In a macabre and cruel way of making fun of David by making up words to make a silly rhyme, they were implying that my mother was a whore who could not keep her pants on and thus, got pregnant with David. Never mind that my mother was married to my father and consequently she could not be labeled as a whore, I was enraged that this kids would have my mother in their stupid mouths. I was so upset about this that I told David that next time he saw the kid or kids who did this to him to point them out to me that I would make them pay. Keep in mind that David was around 8 years old at that time, so to him it was a huge deal to be reassured by his big brother that he was going to be protected.

Weeks went by without any incidents and then one afternoon as David and I were walking through the playground by our house, he saw the culprit of his ridicule. He seemed excited and nervous when he pointed out his “offender” in the distance. From that perspective the kid seemed big, even bigger than me at 15. Without thinking about it I ran towards him convinced that if I surprised him and hit first, I would have the advantage. Since the kid was walking away from him, I grabbed him by the collar of his shirt and swung him around. A right hook to his belly made him lose his air, a punch in the mouth and then another….. by this time all of the kids in the playground were surrounding me chanting “fight, fight, fight…” All I could think of was my mother’s honor….. never again would anyone dare calling my mother a whore…. I was blinded by rage as I continued to punch and kick. It was not long before someone grabbed me and pinned me down…. In my rage I heard a woman crying in desperation…… as I reclaimed by composure, I began to see what I had done.

On the ground, bleeding with what seemed a broken nose, and crying covering his face was this big kid…. The woman who had been crying, his mother, was trying to console him and as she helped him out my rage turned to horror as I realized the kid I had badly hurt was the Down Syndrome boy that had come to my brother’s school a few weeks ago. I learned his name was Christian and in an act of cruelty bigger than anything I had ever seen, had been bullied by the bigger kids into making fun of my brother. I had inflicted a lot of damage on this boy who had no understanding of what he was saying and I did not know what to say. In an attack of remorse, I too started to cry asking him to forgive him… I could not look at him or his mother, I had never in my short life felt so much remorse.

In an effort to regain my mother’s honor, I had attacked the wrong person, I had acted without thinking, I had committed an act of violence against someone who could not properly defend himself. What a shameful and coward act.

Time passed and we all got older. Christian was taken out of the school and we never heard anything from him. I got married and had children… 3 girls and a boy. Life sometimes likes to play cruel jokes on us and my boy was born with Down Syndrome. In a reconciliatory move, I named him Christian…. Not because I felt guilty anymore, but because I wanted to protect this little Christian and make sure that no bully ever took advantage of him. Today Christian is 10 years old. He is a mild case of Down Syndrome and the doctors seem to think that he will live a long and productive life. I cannot help however, to see the stares or the little boys pointing at him when we go to the playground. Today my honor is in making sure that my son will never be abused by anyone. Funny I should say this, but sometimes when I hold my Christian in my arms I still shed a tear of remorse for what I did to that poor boy many years ago.

Based on this story,

int terms of honor,,, in your perspective, what is the most important lesson to be learned from this short story?

1.Interpret the following results of multiple regression. Interpret each statistic (b and beta) for each independent variable and the intercept. Provide a complete interpretation using the five-step model of hypothesis testing.

Regression: The Relationship Between Number of Math Courses Taken, High School Grade Point Average, College Grade Point Average and Score on Stat Final

               Variables Entered/Removed(b)

a All requested variables entered.

b Dependent Variable: Score on Stat Final

                                   Model Summary

a Predictors: (Constant), Number of Math Courses taken, High School Grade Point Average, College Grade Point Average

                                                           ANOVA(b)

a Predictors: (Constant), Number of Math Courses taken, High School Grade Point Average, College Grade Point Average

b Dependent Variable: Score on Stat Final

                                                              Coefficients(a)

a Dependent Variable: Score on Stat Final

Harry Potter books have become popular with children and adults alike. A recent survey conducted in London revealed that 80% high school students have read the first Harry Potter book. A random sample of 7 London high school students is taken, and the number of students who have read the first Harry Potter book is recorded.

a) Define the random variable of interest and give its distribution, including the values of all the parameters.                          

X = (Click to select)the sample meanSample size of London high school students who participated in the surveyProbability that a London high school student has read the first Harry Potter bookNumber of London high school students who have read the first Harry Potter book

X ~ (Click to select)BinomialNormalContinuousUniform(n=, p=)

Round answers for parts (b) and (c) to two decimal places. Round answers for parts (d) through (h) to four decimal places.

b) What is the expected number of randomly selected students who have read the first Harry Potter book?   

c) What is the variance of number of students who have read the first Harry Potter book?   

d) What is the probability that exactly two of the randomly selected students has read the first Harry Potter book?

e) What is the probability that at least two of the randomly selected students have read the first Harry Potter book?

f) What is the probability that no more than five of the randomly selected students have read the first Harry Potter book?

g) What is the probability that between two and seven (inclusive) of the randomly selected students have read the first Harry Potter book?

h) What is the probability that more than seven of the randomly selected students have read the first Harry Potter book?

1. Based on Chapter 10: Making Capital Investment Decisions:

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios 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 recent 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, 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 smartphone 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 smartphones 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 smartphone 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 $6.5 million.

As previously stated, Conch Republic currently manufactures a smartphone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smartphone, sales will be 95,000 units and

Page 1 of 2

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 existing 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 firstoccur 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.

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 Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios 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 recent 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, 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 smartphone 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 smartphones 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 smartphone 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 $6.5 million. As previously stated, Conch Republic currently manufactures a smartphone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smartphone, sales will be 95,000 units and Page 2 of 2 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 existing 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.

a. What is the payback period of the project?

b. What is the profitability index of the project?

c. What is the IRR of the project?

d. What is the NPV of the project?

book: Fundamentals of Corporate Finance Alternate Edition (9th Edition)

Conch Republic Electronics, Part 1
Conch Republic Electronics is a small electronics manufacturer located in Key West, Florida. The president of the company is Shelley Couts, who inherited the business. When the company was founded more than 70 years ago, it repaired radios and other devices for the home. With the passage of time, the company expanded to the manufacturing areas and today is a reputed producer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's bail department. One of the main devices manufactured by Conch Republic and that generates income in a personalized digital assistant (PDA, acronym for personal digital assistant). Today, Conch Republic has a PDA model in the market and sales have remained at an excellent level. The PDA is a unique item that comes in a variety of tropical colors and has been preprogrammed to play Jimmy Buffett's music. However, as with any electronic article, the technology changes the deprivation and the real PDA has limited features compared to other more recent models. Conch Republic spent $ 750,000 to develop the prototype of a new PDA that has all the characteristics of the real, but adds new features such as the capacity of a cell phone. The company has spent an additional $ 200,000 for a marketing study to determine the sales figures expected for the new PDA. Conch Republic can manufacture the new PDA at a variable cost of $ 155 per unit. It has been estimated that the operation costs will be 4.7 million per year. The estimated volume of sales is 74,000, 95,000,125,000, 105,000 and 80,000 dollars annually for the next five years. The unit price of the new PDA will be 360 ??dollars. The necessary equipment can be purchased for 21.5 million dollars and depreciated based on a seven-year MACRS program. It is considered that within five years the value of the equipment will be 4.1 million dollars. As you said, Conch Republic currently manufactures a PDA. It is expected that the production of the model will be completed within the years. If Conch Republic does not present the new PDA, sales will be 80,000 and 60,000 units for the next two years. The price of the real PDA is $ 290 per unit, with variable variables of $ 120 per year and costs of $ 1,800,000 per year. If Conch Republic truly presents the new PDA, the actual PDA sales will decrease by 15,000 units per year and the price of the available units will decrease by 255 dollars each. The net working capital for PDAs is 20% of sales and the present with the periodicity of cash flows for the year; for example, there is no initial outlay for the NWC, but changes in the NWC will occur first in year 1 with the first year sales. Conch Republic has a corporate rate of 35% and a required return of 12%. Shelly has asked for a Jay to prepare a report that answers the following questions.
Questions
1. What is the recovery period of the project?
2. What is the profitability index of the project?
3. What is the internal rate of return of the project?
4. What is the net present value of the project?