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 $275.00 each
Necessary equipment to produce the PDA will cost $20.5 million, with depreciation for 7 years MACRS schedule.
It is believed that this equipment after 5 years will be worth $3.5 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. 68,000
2. 79,000
3. 105,000
4. 83,000
5. 64,000

(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

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,

Conch Republic Electronics
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 eq

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)

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%.

10-5: (Paybackperiod,NPV, PI, and IRR calculations) You are considering a project with an initial cash outlay of $80,000 and expected free cash flows of 20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent.
a. What is the project's payback period?
b. What is the project's NPV

(See attached file for full problem description)
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Problem 7-9
NPV and IRR. A project that costs $3,000 to install will provide annual cash flows of $800 for each of the next 6 years.
Is this project worth pursuing if the discount rate is 10 percent?
Project NPV
How high can the discount rate be before y

Given the following project cash flows, identify the correct statement(s). The firm's cost of capital is 15%.
Cash Flow
0 -50
1 150
2 75
3 -10
I. This project will have two IRRs.
II. The NPV of the project is $180.57.
III. The profitability index of the project is 2.61.
IV. The payback period of