| | 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
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1 Lecturer: Dr Lawrence Question: Conch Republic Electronics‚ Part 1 Conch Republic Electronics is a midsized electronics manufacturer located in Key West‚ Florida. The company president is Shelley Couts‚ who inherited the company. When it was founded over 70 years ago‚ the company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless‚ a recent MBA graduate
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Conch Republic Electronics Conch Republic Electronics BUS350 Principles of Finance Dr. Lance Gilbert November 30‚ 2014 Conch Republic Electronics With the company being midsized in the electronics manufacturing there is an increasing pressure to remain highly marketable and keep up with the product releases that are profitable within the public’s technological desires. Having expanded their own base product from repair to the addition of product manufacturing‚ Conch Republic Electronics is aware
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Conch Republic Electronics is a midsized electronics manufacturer located in Key West‚ Florida. The company president is Shelley Couts‚ who inherited the company. When it was founded over 70 years ago‚ the company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items‚ Jay McCanless‚ a recent MBA graduate‚ has been hired by the company’s finance department. One of the major
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Input Area (expand as needed): Selling price per unit 247.5 VC per unit 97 Fixed cost per year 4200000 Discount rate 19% Tax rate 35% Number of years for the project 5 Model Area (expand as needed): Initial Investments Equipment Purchase 20500000 Working Capital 3000000 Total Investment 23500000 Salvage value 3500000 Annual Net After Tax Cash Flows year 0 year 1 year 2 year 3 year 4 year 5 Initial Investment -23500000 Estimated Sales volume 68000 79000 105000 73000
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The keys to the company’s future value and growth are profitability (ROE) and the reinvestment of retained earnings. Retained earnings are determined by dividend payout. The spreadsheet sets ROE at 15% for the five years from 2006 to 2010. If Reeby Sports will lose its competitive edge by 2011‚ then it cannot continue earning more than its 10% cost of capital. Therefore ROE is reduced to 10% starting in 2011. The payout ratio is set at .30 from 2006 onwards. Notice that the long-term growth rate
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Chapter 10 – Minicase Conch Republic Electronics‚ Part 1 Conch Republic Electronics is a midsized electronics manufacturer located in Key West‚ Florida. The company president is Shelley Couts‚ who inherited the company. When it was founded over 70 years ago‚ the company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless‚ a recent MBA graduate‚ has been hired
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without a downside though. With these electronic technologies becoming cheaper and more expendable it creates a situation where the disposal of these electronics. Electronic waste problems are not just of where you dispose of it‚ but also how it effects the area around the dump site. Studies have shown that‚ “heavy metals pollution of groundwater‚ soil‚ and plants is an issue of environmental concern‚ especially when e-waste is involved”(Olafisoye‚ 7). With electronic waste continuing to grow this pollution
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Florida Atlantic University Star River Electronics Ltd. – Case Analysis Case Summary Star River Electronics is a joint venture company that has gained respect within the industry for producing high quality CD-ROMs to major software companies. In the mid 1990s‚ multimedia products created a high demand for CD-ROMs‚ allowing manufacturing companies of all sizes to enter the market. As a result‚ an oversupply ensued causing prices to decline as much as 40%. Star River survived a period
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fully understand their writing. In the novel‚ Lord of the Flies‚ William Golding uses one very particular symbol to represent society‚ the conch. As the novel progresses the conch alters which complements what is happening throughout the novel. In the beginning of the novel‚ Ralph‚ the main protagonist who represents the average person‚ first picks up the conch. But Piggy‚ another protagonist who represents intelligence‚ was the first to recognize it. “Something creamy lay among the ferny weeds. ‘A
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