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Conch Republic Electronics Case Essay

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| | Case #4 - Conch Republic Electronics | | | | | | | | | | | | | | | | Input Area: | | | | | | | | | | | | | | | | | | | | | | | | | | | Equipment | $15,000,000 | | | | | | | | Salvage value | $3,000,000 | | | | | | | | R&D | $750,000 | sunk cost | | | | | | | Marketing study | $200,000 | sunk cost | | | | | | | | | | | | | | | | | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | | | | Sales(units) | 70,000 | 80,000 | 100,000 | 85,000 | 75,000 | | | | Depreciation rate | 14.29% | 24.49% | 17.49% | 12.49% | 8.93% | | | | Sales of old PDA | 80,000 | 60,000 | | | | | | …show more content…

| 1,300,000 | 900,000 | | | | | | | Net sales | $13,300,000 | $16,300,000 | $26,000,000 | $22,100,000 | $19,500,000 | | | | | | | | | | | | | VC | | | | | | | | | New | $6,020,000 | $6,880,000 | $8,600,000 | $7,310,000 | $6,450,000 | | | | Lost sales | 1,020,000 | 1,020,000 | | | | | | | | $5,000,000 | $5,860,000 | $8,600,000 | $7,310,000 | $6,450,000 | | | | | | | | | | | | | | | | | | | | | | Sales | $13,300,000 | $16,300,000 | $26,000,000 | $22,100,000 |

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