Spent $750,000 to develop a new PDA
Spent an additional $200,000 for marketing study to determine the expected sales.
Can manufacture the new PDA with variable cost for $155.00 each.
Fixed Costs for the operation are estimated at $4.7 million per year.
Unit Price $360.00 each
Necessary equipment to produce the PDA will cost $21.5 million, with depreciation for 7 years MACRS schedule.
It is believed that this equipment after 5 years will be worth $4.1 million.
NWC will be 20% of Sales
Changes in NWC will occur in Year 1, with the first year sales.
There is no initial outlay for NWC.
Conch Republic Corporate Tax Rate is 35% and has a 12% required return.

Estimated Sales Volumes:
NWC 20%

Estimated sales volume per year is
1. 74,000
2. 95,000
3. 125,000
4. 105,000
5. 80,000

(10-1)
NPV
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. What is the project's NPV (Hint: Begin by constructing a time line.)
(10-2)
IRR
Refer to Problem 10-1. What is the Project's IRR?
(10-3)
MIRR
Refer to Problem 10-1 What is t

2. There are two mutually exclusive projects under consideration by the BUILDERS-R-US Company:
Year Project A Project B
0 -30,000 -50,000
1 10,000 15,000
2 10,000 15,000
3 10,000 15,000
4 10,000 15,000
The cost of capital is 10%.
Calculate the following values for each project using the time value tables and Micro

There are two mutually exclusive projects under consideration by the
Stephen Company. The following is the expected cash flows from the
projects:
Year Project A Project B
0 -30,000 -60,000
1 10,000 20,000
2 10,000 20,000
3 10,000 20,000
4 10,000 20,000
5 10,000 20,000
The cost of capital is 14%.
Please calculate th

I need help in understanding the cost of capital and how to figure it. Calculate the values for each project using the time value table- the cost of capital is 12%
1. NPV
2. IRR
3. Profitability index
4.Payback Period
Year Project A Project B
0 $-30,000 $-60,000
1 $ 10,000 $20,000
2 $ 10,000 $20,000
3 $ 10,000 $20,

Project SS costs $52,125, its expected net cash flows are $12,000 per year for 8 years, its WACC is 12%.
What is the project's NPV?
IRR?
MIRR?
Payback Period?
Discounted Payback Period?
(Show calculations)

I have an excel spreadsheet where certain areas have been left blank and need to be computed in order to complete a research paper. However, I'm not sure how to do the calculations correctly. Please help. The areas highlighted in YELLOW need to be calculated. Thank you.

Consider an investment that costs $100,000 and had a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years.
Wwhat is the payback period?
What is the discounted payback period?
What is the NPV?
What is the IRR?
Should we accept this project?
What decision rule should b

Conch Republic Electronics
Spent $750,000 to develop a prototype (or Model) for a new PDA
Spent an additional $200,000 for marketing study to determine the expected sales.
Can manufacture the new PDA with variable cost for $97.00 each.
Fixed Costs for the operation are estimated at $3.4 million per year.
Unit Price $275.0

Consider the data on the following two mutually exclusive projects under consideration by the Stephen Company:
Year
Project A
Project B
0
-30,000
-60,000
1
10,000
20,000
2
10,000
20,000
3
10,000
20,000
4
10,000
20,000
5
10,000
20,000
The cost of capital is 14%.