Question: could you help me with these two questions QUESTION 3 You are the CEO of Apple. You are considering the launch of the newest iPhone,

 could you help me with these two questions QUESTION 3 You could you help me with these two questions

QUESTION 3 You are the CEO of Apple. You are considering the launch of the newest iPhone, the iPhone 12. Market research shows that the launch of the iPhone 12 will decrease demand for the iPhone 11 by 25%. When evaluating this project, should you consider the decreased demand for the iPhone 11? Yes. It's a side effect. No. It is not a relevant consideration. No, because the market research has already occurred. Yes, because the market research costs are relevant cash flows. QUESTION 4 Tank Ltd is considering undertaking the purchase of a new piece of equipment. The equipment costs $35,000 to purchase today and for tax purposes must be depreciated down zero over its 5 year useful life using the straight-line method. If Tank is actually forecasting a salvage value of $9,000 after 4 years, what is the net cash flow (after tax) from selling the equipment in year 4? Assume the tax rate is 30%. 7600 9000 7000 8400

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!