1B.Apple has made a technological breakthrough. its new MextPhone product Initial investment in development is expected to be $14!} million. The project should have a useful life cycle of 5 years before newer technolon replacas it. The price per phone is expected to be $2!\" based on phone prices now. The variable cost of production per phone is expected to be $12!] based on production costs now. [There are no fixed costs except the Inllial investment] Demand for the phone is expected to he 1 million unite {phones} per year {ranteining the same in each of the 5 years of the project}. The initial investment would be depreclated according to 5-year MABRS. At the and of the project, the equipment could be sold for 32D\" based on prices for Eyasr- old equipment now. Ination ls expected to be 5% per year in electronic products such as the MextPhone: 2% per year In production costs; and 1% per year in equipment for production. Apple's nominal WAGE for this project is 15%, and its tax rate is 35%. There is no impact on working capital. |Ili'slculata the lIlP'HIr for this project. 125,324,942 130.5?2334 123,591,463 121 43,984 F-PP'F