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hello everyone, I need help with the below problem: Signature Assignment Parameters the company is Starbucks, download the most recent copy of the company's 10-K

hello everyone,

I need help with the below problem:

Signature Assignment Parameters

the company is Starbucks, download the most recent copy of the company's 10-K report.

The parameters of the deliverable are as follows.

  • The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. What is this amount by taking 10% of the property, plant, and equipment figure that appears on the firm's balance sheet.
  • The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment's cost.
  • The annual EBIT for this new project will be 18% of the project's cost.
  • The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use 35% as the tax rate in this project.
  • The hurdle rate for this project will be the WACC that you are able to find on a financial website, such as Gurufocus.com. If you are unable to find the WACC for a company, contact your instructor. He or she will assign you a WACC rate.

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