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Apple Computer wants to finance the production of a handheld electronic brain that, based on your behavior, will learn how to control nearly all the

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Apple Computer wants to finance the production of a handheld "electronic brain" that, based on your behavior, will learn how to control nearly all the electronic devices in your home, such as the thermostat, coffee pot, TV, and sprinkler system. As it is the case in most large investment commitments, Apple wants to spread out the investment costs over several years so that the necessary research is completed and the production is initiated. The distribution of the expected yearly investment costs are shown in the table below: Years 0 1 2 3 4 5 Investment Costs 0 A+10 A+20 A+30 A+40 (in billions Determine: a) The equivalent future worth in year 5, if A-20, and the interest rate is 8% per year. (You should sketch the cash flow diagram and show all your work). b) What must be the base amount (A) so that the equivalent future worth does not exceed the maximum budget limit of 300 billion dollars

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