公司理财第九版课案例Conch Republic Electronics.docxVIP

ConchRepublicElectronicsAnalysis

AnalysisofConchRepublicElectronics

Developaprototype

$750000

Sunkcost

Marketstudy

$200000

ThenewPDA:

Variablecostperunit

$155

Fixedcostperyear

$4700000

Priceofperunit

$360

Necessaryequipment

Depreciation

Seven-yearMACRS

Salvagevalue

$4100000

Taxrate

35%

Requiredreturn

12%

Year

MACRSPercentage

Depreciation

Salesvolume

1

14.29%

$3,072,350

74000

2

24.49%

$5,265,350

95000

3

17.49%

$3,760,350

125000

4

12.49%

$2,685,350

105000

5

8.93%

$1,919,950

80000

Theexistingmodel:

Priceperunit

$290

Variablecostperunit

$120

Fixedcos