Question

Assume Apple invested $2.12 billion to expand its manufacturing capacity. Assume that these assets have a 10-year life, and that Apple requires a 10% internal rate of return on these assets.
Required
What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal rate of return? (Identify the 10-period, 10% factor from the present value of an annuity table, and then divide $2.12 billion by this factor to get the annual cash flows necessary.)


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  • CreatedApril 23, 2015
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