Question: Motorola Mobility LLC is a company that develops mobile devices . Headquartered in Chicago , Illinois , United States, the company was formed on January

Motorola Mobility LLC is a company that develops mobile devices . Headquartered in Chicago , Illinois , United States, the company was formed on January 4, 2011 by the split of Motorola Inc. into two separate companies; Motorola Mobility took on the company's consumer - oriented product lines, including its mobile phone business and its cable modems and set - top boxes for digital cable and satellite television services, while Motorola Solutions retained the company's enterprise - oriented product lines. Early 2012, Google decided to purchase Motorola mobility LLC for $12.5b. Google had a plan to keep Motorola mobility for 5 years. Google financial analysis team made the following forecasts: Year Cash flow(in billions) Net income (in billions) 2012 1.5 1 2013 2.5 2 2014 4 3 2015 3 2 2016 6 (includes 3.5b selling price) 1.5 Calculate the Motorola project internal rate of return (IRR). Would you accept or reject this project?

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!