The attached Excel spreadsheet has already solved Part 1. Your task is to address the concerns raised in Part 2. Specifically, you will duplicate the Excel tables in Part 1 and conduct the sensitivity analysis of NPV to changes in the following:

1. Price of the new smart phone decreases by 20%.

2. The sale quantity of the new smartphone decreases by 5% from the estimated numbers. Upload your Excel file here before the deadline.

Chapter 10 Conch Republic Electronics, Part 1 Input Area: EquipmentSalvagevalueR&DMarketingstudy$49,500,000$6,800,000$950,000$250,000 PriceVCFC$$$5752456,900,000 Price of old phone $435 Revised price of old phone $235 VC of old phone $155 Tax rate 21% NWC percentage 20% Required return 12% Output Area: Old phone price reduction $200 SalesLostsalesLostrev.NetsalesNewYear1(13,000,000,000)(13,000,000)$65,950,000Year2$97,750,000(7,000,000)$77,700,000Year4Year3$74,750,000$74,750,000Year5$60,375,000$60,375,000$46,000,000$46,000,000 VC \begin{tabular}{lccccc} New & $39,200,000 & $41,650,000 & $31,850,000 & $25,725,000 & $19,600,000 \\ Lost sales & (4,650,000) & (4,650,000) & & & \\ \cline { 2 - 6 } & $34,550,000 & $37,000,000 & $31,850,000 & $25,725,000 & $19,600,000 \end{tabular} \begin{tabular}{lrrrrr} Sales & $65,950,000 & $77,700,000 & $74,750,000 & $60,375,000 & $46,000,000 \\ VC & 34,550,000 & 37,000,000 & 31,850,000 & 25,725,000 & 19,600,000 \\ Fixed costs & 6,900,000 & 6,900,000 & 6,900,000 & 6,900,000 & 6,900,000 \\ Dep & 7,073,550 & 12,122,550 & 8,657,550 & 6,182,550 & 4,420,350 \\ EBT & $17,426,450 & $21,677,450 & $27,342,450 & $21,567,450 & $15,079,650 \\ Tax & 3,659,555 & 4,552,265 & 5,741,915 & 4,529,165 & 3,166,727 \\ \hline NI & $13,766,896 & $17,125,186 & $21,600,536 & $17,038,286 & $11,912,924 \\ +Dep & 7,073,550 & 12,122,550 & 8,657,550 & 6,182,550 & 4,420,350 \\ OCF & $20,840,446 & $29,247,736 & $30,258,086 & $23,220,836 & $16,333,274 \end{tabular} NWC Beg End NWC CF \begin{tabular}{rrcrr} 13,190,000 & 15,540,000 & 14,950,000 & 12,075,000 & 0 \\ \hline($13,190,000) & ($2,350,000) & $590,000 & $2,875,000 & $12,075,000 \end{tabular} Net CF $7,650,446$26,897,736$30,848,086$26,095,836$28,408,274 Salvage BV of equipment $11,043,450 Chapter 10 Conch Republic Electronics, Part 1 Input Area: EquipmentSalvagevalueR&DMarketingstudy$49,500,000$6,800,000$950,000$250,000 PriceVCFC$$$5752456,900,000 Price of old phone $435 Revised price of old phone $235 VC of old phone $155 Tax rate 21% NWC percentage 20% Required return 12% Output Area: Old phone price reduction $200 SalesLostsalesLostrev.NetsalesNewYear1(13,000,000,000)(13,000,000)$65,950,000Year2$97,750,000(7,000,000)$77,700,000Year4Year3$74,750,000$74,750,000Year5$60,375,000$60,375,000$46,000,000$46,000,000 VC \begin{tabular}{lccccc} New & $39,200,000 & $41,650,000 & $31,850,000 & $25,725,000 & $19,600,000 \\ Lost sales & (4,650,000) & (4,650,000) & & & \\ \cline { 2 - 6 } & $34,550,000 & $37,000,000 & $31,850,000 & $25,725,000 & $19,600,000 \end{tabular} \begin{tabular}{lrrrrr} Sales & $65,950,000 & $77,700,000 & $74,750,000 & $60,375,000 & $46,000,000 \\ VC & 34,550,000 & 37,000,000 & 31,850,000 & 25,725,000 & 19,600,000 \\ Fixed costs & 6,900,000 & 6,900,000 & 6,900,000 & 6,900,000 & 6,900,000 \\ Dep & 7,073,550 & 12,122,550 & 8,657,550 & 6,182,550 & 4,420,350 \\ EBT & $17,426,450 & $21,677,450 & $27,342,450 & $21,567,450 & $15,079,650 \\ Tax & 3,659,555 & 4,552,265 & 5,741,915 & 4,529,165 & 3,166,727 \\ \hline NI & $13,766,896 & $17,125,186 & $21,600,536 & $17,038,286 & $11,912,924 \\ +Dep & 7,073,550 & 12,122,550 & 8,657,550 & 6,182,550 & 4,420,350 \\ OCF & $20,840,446 & $29,247,736 & $30,258,086 & $23,220,836 & $16,333,274 \end{tabular} NWC Beg End NWC CF \begin{tabular}{rrcrr} 13,190,000 & 15,540,000 & 14,950,000 & 12,075,000 & 0 \\ \hline($13,190,000) & ($2,350,000) & $590,000 & $2,875,000 & $12,075,000 \end{tabular} Net CF $7,650,446$26,897,736$30,848,086$26,095,836$28,408,274 Salvage BV of equipment $11,043,450