Excel File Ealt View Insert Format Tools Data Window Help Autosave O OFF PRO Home Insert Draw Page Layout Formulas Data Review View Tell me Calibri (Body) 11 AA General Paste 172 X v fix C D Pacho Republic can manufacture a new smart phone for $165 cach in variable costs. Fixed costs are expected to run $4.9 million per year. The estimated sales are 84,000, 99,000, 130,000, 110,090, and 90,090 per your for the next 5 yours, respectively. The price per unit will be $380. The necessary equipment can be purchased 4 $20 5 million and will be depreciated on a scorva-year MACKS schedule (14.29%%, 24.49%, 17.49%, 124976, 893%6, 8.929%, 8.93%%, and 4,4694) It is believed that the market value of the equipment in $ years will be $4.5 mallion. Net working capital for the new smart phone project will be 20%% of each year sales with the timing of the cash flows's sales (ie , at the end of each year), No initial working capital is incurred. Pancho Republic dready manufactures a smart phone model, which it intends to stop manufacturing in two years. If it does not stop, it will sell 80,000 and 60,000 units at $310 each, respectively over the next two yew. The variable cost per unit of the existing model is $120 and fixed costs are $1,800,000 per year. With the introduction of the new smust phone, sales of the existing model will drop by 15,000 units per year and the mint price will have to be lowered to $255. Variable costs and fixed costs of oki PDA The corporate tax rite for Pancho Electronics is 21 percent, and its required rate of return is 12% Sholley has asked you to prepare a report that answers the following questions, (20 Points) What is the profitability index of the project? 15. (20 Points] What is the IRR of the project? G (20 Points) What is the NPV of the project? (20 Points) At what price would Pancho Republic Electronics be indifferent to accepting the project? (20 Points) At what level of variable costs per unit would Pancho Republic Electronics be indifferent to Bodepaing the project? Problem 3-Data & Questions Ready