Question
I did the Apple Company and used the following http://investor.apple.com/secfiling.cfm?filingid=320193-17-70&cik=320193 I found the Form 10-K of Apple Inc. for the fiscal year ended September 30,
I did the Apple Company and used the following
http://investor.apple.com/secfiling.cfm?filingid=320193-17-70&cik=320193
I found the Form 10-K of Apple Inc. for the fiscal year ended September 30, 2017.
The firm is looking to expand its operations by 10% of the firm's net property, plant, and equipment. (Calculate 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.
Deliverables:
Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
Your calculations that convert the project's EBIT to free cash flow for the 12 years of the project
Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project
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