• Intel is planning to build a new semiconductor manufacturing plant with the following financial implications:
  • Initial Investment: $5 billion
  • Estimated Annual Revenue: $1.8 billion
  • Operating Costs: $1 billion annually
  • Depreciation Expense: $300 million annually
  • Tax Rate: 21%

• Requirements:
  1. Calculate the annual net income from the new plant.
  2. Prepare a five-year financial projection for the new semiconductor plant.
  3. Analyze the payback period for the initial investment.
  4. Discuss the strategic importance of the new plant for Intel’s supply chain.
  5. Evaluate the risks and potential technological challenges of the new plant.