Based on Amazons 10k report:

https://last10k.com/sec-filings/amzn#link_fullReport

The parameters are as follows:

• The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.)
• The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost.
• The annual EBIT for this new project will be 18% of the project's cost.
• The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.
• The hurdle rate for this project will be the WACC which 9.52%

Solve for:

• calculations for the amount of property, plant, and equipment and the annual depreciation for the project
• calculations that convert the project's EBIT to free cash flow for the 12 years of the project.

The following capital budgeting results for the project:

• Net present value
• Internal rate of return
• Discounted payback period.
• Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project