7 parts remaining. must complete for 6 years. thank you

here is how a similar example shows this quest question solved i just still dont understand how to get it.

You work for Apple After tiling away on $9.9 million worth of prototypes you have finally produced your answer to Google Glasses Glasses (the name alone is genius). Glasses will instantly transport the wearer into the world as Apple wants him to experience it iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $457.3 milion per year along with expenses of $345.5 million. You will need to spend $61.2 million immediately on additional equipment that wil be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $9.6 million as the Glasses are an outcome of the R&D center Apple plans to change $5 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $115.5 milion to $1448 milion immediately They will remain at the elevated level until year 4, when they will return to $115.5 million. Apple's discount rate for this project is 14.4% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. The opportunity cost must be after tax Note: Assume that the equipment is put into use in year 1. Calculate the free cash flows below (Round to two decimal places.) Year 0.00 (8 million) Sales - Cost of Goods Sold Gross Profit - Annual Charge - Depreciation EBIT -TA $ Incremental Earnings +Depreciation - Incremental Working Capital - Capital Investment - Opportunity Cost () Incremental Free Cash Flow lasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can b king at them. You think that these will sell for five years until the next big thing comes along (or until Users are unable to interact with actual hun venues are projected to be $457.3 million per year along with expenses of $345.5 million. You will need to spend $61.2 million immediately on that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a mark n. As the Glasses are an outcome of the R&D center, Apple plans to charge $5 million of the annual costs of the center to the Glasses product ly, Apple's working capital levels will increase from their current level of $115.5 million to $144.8 million immediately. They will remain at the el when they will return to $115.5 million. Apple's discount rate for this project is 14.4% and its tax rate is 35% Calculate the free cash flows and f this project. The opportunity cost must be after-tax ume that the equipment is put into use in year 1. Che free cash flows below: (Round to two decimal places.) (8 million) Year o $ 0.00 0.00 Soods Sold 0.00 harge 000 tion View an Example You work for Apple. After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: iGlasses (the name alone is genius). Glasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend $68 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4, when they will return to $130 million. Apple's discount rate for this project is 13% and its tax rate is 35% Calculate the free cash flows and determine the NPV of this project. (*) The opportunity cost (Year O only) is the after-tax salvage value of the fully depreciated equipment. Note. Assume that the equipment is put into use in year 1. The fully depreciated (Book value = 0) equipment that could be sold for $12 million represents an opportunity cost. If you sold it, you would have to pay taxes on the difference between the $12 million and its book value (0), so you would have to pay (0.35)($12 million) - $4.2 million. Thus, by using the equipment, you are giving up $12 million - $4.2 million - $7.8 million after-tax from selling the equipment. We will recognize this cost in year 0. The free cash flows are shown below: (3 million) Year 6 0.00 Sales $ 0.00 - Cost of Goods Sold Gross Profit Year 0.00 $ 0.00 0.00 $ 0.00 0.00 Year 1 470.00 $ 364.00 106.00 $ 0.00 13.60 Year 2 470.00 $ 364.00 106.00 $ 0.00 21.76 Year 3 470.00 $ 364.00 106.00 $ 0.00 13.06 Year 4 470.00 $ 364.00 106.00 $ 0.00 7.83 Year 5 470.00 364.00 106.00 0.00 7.83 $ 0.00 - Annual Charge 0.00 - Depreciation Press Continue to see more. 1 part 1 remaining Continue Close number in the edit fields and then click Check Answer when they will return to $115.5 million Apple's discount rate for this project is 14,4% and its tax rate is 35% Calculate the free cash flows and de this project. (*) The opportunity cost must be after-tax. ume that the equipment is put into use in year 1 the free cash flows below: (Round to two decimal places.) (8 million) Year O Soods Sold 0.00 harge tion * View an Example You work for Apple After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: iGlasses (the name alone is genius), iGlasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend 168 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4 when they will return to $130 million Apple's discount rate for this project is 13% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. () The opportunity cost (Year only) is the after tax salvage value of the fully depreciated equipment Note Assume that the equipment is put into use in year 1 Gross Profit 0.00 $ 106.00 $ 106.00 $ 106.00 $ 106.00 $ 106.00 $ 0.00 - Annual Charge 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Depreciation 0.00 13.60 21.76 13.06 783 7.83 3.92 EBIT $ 98.17 34.36 -Tex 92.94 $ 32.53 60.41 $ 13.06 84.24 $ 29.48 54.76 $ 21.76 0.00 (3.92) (1.37) (2.55) 3.92 63 81 0.00 $ 0.00 0.00 $ 0.00 18.00 68.00 7.80 (93.80) $ 7.83 92.40 $ 32.34 60.06 $ 13.60 0.00 0.00 0.00 73.66 $ 98.17 $ 34 36 63.81 $ 783 0.00 0.00 0.00 Incremental Earnings + Depreciation - Incremental Working Capital - Capital Investment - Opportunity Cost incremental Free Cash Flow 0.00 0.00 0.00 (18.00) 0.00 0.00 0.00 0.00 73.47 $ 0.00 0.00 0.00 $ 76.52 $ 71.64 $ 89.64 $ Press Continue to see more. 1 part I remaining Continue Close (5 million) Year O 0.00 Soods Sold 0.00 0.00 harge tion 0 View an Example You work for Apple After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: Glasses (the name alone is genius) Glasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend 368 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4, when they will return to $130 million. Apple's discount rate for this project is 13% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. (*) The opportunity cost (Year only) is the after tax salvage value of the fully depreciated equipment Note: Assume that the equipment is put into use in year 1. - Capital Investment 0.00 0.00 68.00 7.80 (93.80) $ - Opportunity Cost Incremental Free Cash Flow The NPV of the project is: 0.00 0.00 73.66 $ 0.00 0.00 76.52 $ 0.00 0.00 0.00 71.64 $ 0.00 0.00 89.64 0.00 1.37 $ 73.47 $ $ FCF NPV. NPV $73.47 million (1 +0.13) $71.64 million (1+0.13) $73.66 million $76,52 million - $93.8 million + - (1 +0.13) (1+0.13)2 $89.64 million $1.37 million - $175.48 million (1 +0.13) (1+0.1376 Question is complete. All parts showing Close You work for Apple After tiling away on $9.9 million worth of prototypes you have finally produced your answer to Google Glasses Glasses (the name alone is genius). Glasses will instantly transport the wearer into the world as Apple wants him to experience it iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $457.3 milion per year along with expenses of $345.5 million. You will need to spend $61.2 million immediately on additional equipment that wil be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $9.6 million as the Glasses are an outcome of the R&D center Apple plans to change $5 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $115.5 milion to $1448 milion immediately They will remain at the elevated level until year 4, when they will return to $115.5 million. Apple's discount rate for this project is 14.4% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. The opportunity cost must be after tax Note: Assume that the equipment is put into use in year 1. Calculate the free cash flows below (Round to two decimal places.) Year 0.00 (8 million) Sales - Cost of Goods Sold Gross Profit - Annual Charge - Depreciation EBIT -TA $ Incremental Earnings +Depreciation - Incremental Working Capital - Capital Investment - Opportunity Cost () Incremental Free Cash Flow lasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can b king at them. You think that these will sell for five years until the next big thing comes along (or until Users are unable to interact with actual hun venues are projected to be $457.3 million per year along with expenses of $345.5 million. You will need to spend $61.2 million immediately on that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a mark n. As the Glasses are an outcome of the R&D center, Apple plans to charge $5 million of the annual costs of the center to the Glasses product ly, Apple's working capital levels will increase from their current level of $115.5 million to $144.8 million immediately. They will remain at the el when they will return to $115.5 million. Apple's discount rate for this project is 14.4% and its tax rate is 35% Calculate the free cash flows and f this project. The opportunity cost must be after-tax ume that the equipment is put into use in year 1. Che free cash flows below: (Round to two decimal places.) (8 million) Year o $ 0.00 0.00 Soods Sold 0.00 harge 000 tion View an Example You work for Apple. After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: iGlasses (the name alone is genius). Glasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend $68 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4, when they will return to $130 million. Apple's discount rate for this project is 13% and its tax rate is 35% Calculate the free cash flows and determine the NPV of this project. (*) The opportunity cost (Year O only) is the after-tax salvage value of the fully depreciated equipment. Note. Assume that the equipment is put into use in year 1. The fully depreciated (Book value = 0) equipment that could be sold for $12 million represents an opportunity cost. If you sold it, you would have to pay taxes on the difference between the $12 million and its book value (0), so you would have to pay (0.35)($12 million) - $4.2 million. Thus, by using the equipment, you are giving up $12 million - $4.2 million - $7.8 million after-tax from selling the equipment. We will recognize this cost in year 0. The free cash flows are shown below: (3 million) Year 6 0.00 Sales $ 0.00 - Cost of Goods Sold Gross Profit Year 0.00 $ 0.00 0.00 $ 0.00 0.00 Year 1 470.00 $ 364.00 106.00 $ 0.00 13.60 Year 2 470.00 $ 364.00 106.00 $ 0.00 21.76 Year 3 470.00 $ 364.00 106.00 $ 0.00 13.06 Year 4 470.00 $ 364.00 106.00 $ 0.00 7.83 Year 5 470.00 364.00 106.00 0.00 7.83 $ 0.00 - Annual Charge 0.00 - Depreciation Press Continue to see more. 1 part 1 remaining Continue Close number in the edit fields and then click Check Answer when they will return to $115.5 million Apple's discount rate for this project is 14,4% and its tax rate is 35% Calculate the free cash flows and de this project. (*) The opportunity cost must be after-tax. ume that the equipment is put into use in year 1 the free cash flows below: (Round to two decimal places.) (8 million) Year O Soods Sold 0.00 harge tion * View an Example You work for Apple After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: iGlasses (the name alone is genius), iGlasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend 168 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4 when they will return to $130 million Apple's discount rate for this project is 13% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. () The opportunity cost (Year only) is the after tax salvage value of the fully depreciated equipment Note Assume that the equipment is put into use in year 1 Gross Profit 0.00 $ 106.00 $ 106.00 $ 106.00 $ 106.00 $ 106.00 $ 0.00 - Annual Charge 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Depreciation 0.00 13.60 21.76 13.06 783 7.83 3.92 EBIT $ 98.17 34.36 -Tex 92.94 $ 32.53 60.41 $ 13.06 84.24 $ 29.48 54.76 $ 21.76 0.00 (3.92) (1.37) (2.55) 3.92 63 81 0.00 $ 0.00 0.00 $ 0.00 18.00 68.00 7.80 (93.80) $ 7.83 92.40 $ 32.34 60.06 $ 13.60 0.00 0.00 0.00 73.66 $ 98.17 $ 34 36 63.81 $ 783 0.00 0.00 0.00 Incremental Earnings + Depreciation - Incremental Working Capital - Capital Investment - Opportunity Cost incremental Free Cash Flow 0.00 0.00 0.00 (18.00) 0.00 0.00 0.00 0.00 73.47 $ 0.00 0.00 0.00 $ 76.52 $ 71.64 $ 89.64 $ Press Continue to see more. 1 part I remaining Continue Close (5 million) Year O 0.00 Soods Sold 0.00 0.00 harge tion 0 View an Example You work for Apple After toiling away on $13 million worth of prototypes, you have finally produced your answer to Google Glasses: Glasses (the name alone is genius) Glasses will instantly transport the wearer into the world as Apple wants him to experience it: iTunes with the wink of an eye and apps that can be activated just by looking at them. You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $470 million per year along with expenses of $364 million. You will need to spend 368 million immediately on additional equipment that will be depreciated using the 5-year MACRS schedule. Additionally, you will use some fully depreciated existing equipment that has a market value of $12 million. As the Glasses are an outcome of the R&D center, Apple plans to charge $5.7 million of the annual costs of the center to the Glasses product for four years. Finally, Apple's working capital levels will increase from their current level of $130 million to $148 million immediately. They will remain at the elevated level until year 4, when they will return to $130 million. Apple's discount rate for this project is 13% and its tax rate is 35%. Calculate the free cash flows and determine the NPV of this project. (*) The opportunity cost (Year only) is the after tax salvage value of the fully depreciated equipment Note: Assume that the equipment is put into use in year 1. - Capital Investment 0.00 0.00 68.00 7.80 (93.80) $ - Opportunity Cost Incremental Free Cash Flow The NPV of the project is: 0.00 0.00 73.66 $ 0.00 0.00 76.52 $ 0.00 0.00 0.00 71.64 $ 0.00 0.00 89.64 0.00 1.37 $ 73.47 $ $ FCF NPV. NPV $73.47 million (1 +0.13) $71.64 million (1+0.13) $73.66 million $76,52 million - $93.8 million + - (1 +0.13) (1+0.13)2 $89.64 million $1.37 million - $175.48 million (1 +0.13) (1+0.1376 Question is complete. All parts showing Close