The same case study posted can you answer these requirements?

An Investment Analysis Case Study This case is a group project that is due on April 1, before class at 10.30. Stating the obvious: Each group will turn in one report (sounds obvious, but might as well make it explicit) electronically (as a pdf file). While you should include your cash flows tables in your report, you dont have to attach your excel spreadsheets. Cover page: Each report should have a cover page that contains the following the names of the group members in alphabetical order and the following summary information on the analysis: Decision on Investment: Invest or Do not invest Cost of capital: % value Return on capital: % value NPV 10-year life: $ value NPV- Longer life: $ value Report format: Please try to keep your report brief. In the report, be clear about: a. Any assumptions you made to get to your conclusion b. Your final recommendation Exhibits: Please make sure that you include the following in your exhibits a. The table of earnings/cash flows by year b. Your computation of cost of equity/capital/discount rate Time: To keep time straight, you can assume the following: Next year: Year 1 Most recent year: Just ended Right now: Time 0. Any up front expenditure is incurred immediately.

Apple Disrupts the Auto Market: The Apple iCar? Questions on the Project

1. Accounting Return Analysis Estimate the operating income from the proposed iCar investment to Apple over the next 10 years. Estimate the after-tax return on capital for the investment over the 10-year period. Based upon the after-tax return on capital, would you accept or reject this project? This will require you to make some assumptions about allocation and expensing. Make your assumptions as consistent as you can and estimate the return on capital.

2. Cash Flow Analysis Estimate the after-tax incremental cash flows from the proposed iCar investment to Apple over the next 10 years. If the project is terminated at the end of the 10th year, and both working capital and investment in other assets can be sold for book value at the end of that year, estimate the net present value of this project to Apple. Develop a net present value profile and estimate the internal rate of return for this project. If the iCar division is expected to have a life much longer than 10 years, estimate the net present value of this project, making reasonable assumptions about investments needed and cash flows. Develop a net present value profile and estimate the internal rate of return for this project.

3. Sensitivity Analysis Estimate the sensitivity of your numbers to changes in at least three of the key assumptions underlying the analysis (You get to pick what you think are the three key assumptions). Based upon your analysis, and any other considerations you might have, tell me whether you would accept this project or reject it. Explain, briefly, your decision.