Bullets Format Apple Inc is considering investing in a new iPhone manufacturing facility The company is evaluating three options Option A Invest $1 billion in building a new facility Option B Expand an existing facility with a capital expenditure of $800 million Option C Partner with a manufacturin...

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Bullets Format: Apple Inc. is considering investing in a new iPhone manufacturing facility. The company is

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Bullets Format: Apple Inc. is considering investing in a new iPhone manufacturing facility. The company is evaluating three options:

Option A: Invest $1 billion in building a new facility.
Option B: Expand an existing facility with a capital expenditure of $800 million.
Option C: Partner with a manufacturing contractor and pay an annual fee of $200 million for ten years.

Calculate the net present value (NPV) for each option using a discount rate of 8%.

Posted Date: Jun 04, 2024 10:21 AM

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