Apple Inc. has introduced a new series of iPhones. Below are the financial results for the first year of sales.

Income Statement for the Year Ended December 31, 2023:

• Sales revenue: $2,000,000
• Cost of goods sold: $1,200,000
• Gross margin: $800,000
• Operating expenses: $400,000
• Depreciation expense: $100,000
• Operating income: $300,000
• Non-operating items: $50,000
• Net income: $250,000

Balance Sheet as of December 31, 2023:

• Assets:
  • Cash: $100,000
  • Accounts receivable: $300,000
  • Merchandise inventory: $200,000
  • Equipment (less accumulated depreciation): $500,000
  • Total assets: $1,100,000
• Liabilities:
  • Accounts payable: $200,000
  • Notes payable: $300,000
  • Total liabilities: $500,000
  • Stockholders' equity: $600,000

Required:

1. Calculate the ROI for the new iPhone series.
2. Apple's headquarters has $200,000 available for investment in new technologies, expecting a minimum ROI of 15%. Calculate the new ROI if invested at an ROI of 18%.
3. Assess the impact on the ROI if the funds are invested at an ROI of 10%.
4. Discuss the potential benefits and challenges of reinvesting in new technology for Apple.