Conch republic electronics is a mid sized electronics manufacturer


Conch Republic Electronics is a mid sized electronics manipulationr located in Key West, Florida. The union chairman is Shelley Couts, who inherited the union. When it was founded balance 70 years ago, the union originally repaired radios and other free appliances. Balance the years, the union large into manufacturing and is now a respectable manipulationr of multiform electronic items. Jay McCanless, a fresh MBA furrow, has been hired by the union's finance line.One of the senior revenue-producing items false by Conch Republic is a personal digital coadjutor (PDA). Conch Republic presently has one PDA standard on the bargain, and sales bear been palliable. The PDA is a choice item in that it comes in a miscellany of tropical colors and is preprogrammed to play Jimmy Buffett voice. However, as after a while any electronic item, technology changes eagerly, and the present PDA has scant features in similitude after a while newer standards. Conch Republic plain a prototype for a new PDA that has all the features of the solid PDA but adds new features such as cell phone facility. The union has done a bargaining examine to individualize the expected sales figures for the new PDA.Conch Republic can manipulation the new PDA for $200 each in inconstant costs. Fixed costs for the exercise are estimated to run $4.5 favorite per year. The estimated sales capacity is 70,000, 80,000, 100,000, 85,000, and 75,000 per each year for the next five years, respectively. The item expense of the new PDA procure be $340. The needful equipment can be purchased for $16.5 favorite and procure be depreciated on a 5 year straight-line schedule.Net afloat excellent siege for the PDAs procure be $6,000,000 the foremost year of exercises. Of manner NWC procure be recovered at the plans end. Conch Republic has a 35 percent urbane tax reprove and a 12 percent required repay.Shelly has asked Jay to equip a reverberation that answers the forthcoming questions:(A) What is the IRR of the plan?(B) What is the NPV of the plan, fixed on the required reprove of repay of 12%?