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Motorola Mobility LLC is a companythat develops mobile devices . Headquartered in Chicago , Illinois , United States, the company was formed on January 4,

Motorola Mobility LLCis a companythat developsmobile devices. Headquartered inChicago,Illinois, United States, the company was formed on January 4, 2011 by the split ofMotorola Inc.into two separate companies; Motorola Mobility took on the company's consumer-oriented product lines, including itsmobile phonebusiness and itscable modemsandset-top boxesfordigital cableandsatellite televisionservices, whileMotorola Solutionsretained the company's enterprise-oriented product lines.Early 2012, Google decided to purchase Motorola mobility LLC for $12.5b. Google had a plan to keep Motorola mobility for 5 years. Google financial analysis team made the following forecasts:

Year-Cash flow(in billions)-Net income (in billions)

2012-1.5-1

2013-2.5-2

2014-4-3

2015-3-2

2016-6 (includes 3.5b selling price)-1.5

And that the average book value of asset is $8b and Google's required rate of return is its WACC.

10- Calculate the average accounting return (AAR). If you know that the required average accounting return is 25%. Would you accept that project?

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