You have recently assumed the role of CFO at your company. The company's CEO is looking to expand its operations by investing in new property, plant, and equipment. You are asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets.

Please show all work

• 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. Use 35% as the tax rate in this project.
• Apple's weighted average cost of capital is 7.05%. Apple's ROIC % is 22.56% (calculated using TTM income statement data).

What are the following capital budgeting results for the project:

• Net present value
• Internal rate of return
• Discounted payback period.

Using Excel please show all workings

Apple Inc. CONSOLIDATED BALANCE SHEETS (In millions, except number of shares which are reflected in thousands and par value) September 28, 2019 September 29, 2018 ASSETS: $ Current assets: Cash and cash equivalents Marketable securities Accounts receivable, net Inventories Vendor non-trade receivables Other current assets Total current assets 48,844 51,713 22,926 4,106 22,878 12,352 162,819 25,913 40,388 23,186 3,956 25.809 12,087 131,339 Non-current assets: Marketable securities Property, plant and equipment, net Other non-current assets Total non-current assets Total assets 105,341 37,378 32,978 175,697 338,516 $ 170,799 41.304 22,283 234,386 365,725 $ LIABILITIES AND SHAREHOLDERS' EQUITY: $ Current liabilities: Accounts payable Other current liabilities Deferred revenue Commercial paper Temm debt Total current liabilities 46,236 $ 37,720 5,522 5,980 10,260 105,718 55,888 33,327 5,966 11,964 8,784 115,929 Non-current liabilities: Tem debt Other non-current liabilities Total non-current liabilities Total liabilities 91.807 50,503 142,310 248,028 93.735 48,914 142,649 258,578 Commitments and contingencies Shareholders' equity Common stock and additional paid-in capital, $0.00001 par value: 12,600,000 shares authorized; 4,443,236 and 4,754,986 shares issued and outstanding, respectively Retained earnings Accumulated other comprehensive income/(loss) Total shareholders' equity Total liabilities and shareholders' equity 45, 174 45,898 (584) 90,488 338,516 $ 40,201 70,400 (3,454) 107,147 $ 365,725 Apple Inc. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (In millions, except per share amounts) Years ended September 28, September 29, September 30, 2019 2018 2017 S 107,147 S 134,047 S 128,249 Total shareholders' equity, beginning balances 40,201 781 35,867 669 31,251 555 Common stock and additional paid-in capital: Beginning balances Common stock issued Common stock withheld related to net share settlement of equity awards Share-based compensation Tax benefit from equity awards, including transfer pricing adjustments Ending balances (2002) 6,194 (1.778) 5,443 (1,468) 4,909 620 45,174 40,201 35,867 70,400 55,256 (14,129) 98,330 59,531 (13,735) 96,364 48,351 (12.803) Retained earnings: Beginning balances Net income Dividends and dividend equivalents declared Common stock withheld related to net share settlement of equity awards Common stock repurchased Cumulative effects of changes in accounting principles Ending balances (581) (33,001) (1,029) (67,101) 2,501 45,898 (948) (73,056) 278 70,400 98,330 Accumulated other comprehensive income/(loss): Beginning balances Other comprehensive income/loss) Cumulative effects of changes in accounting principles Ending balances 634 (784) (3,454) 2,781 89 (584) (150) (3,026) (278) (3,454) (150) Total shareholders' equity, ending balances S 90,488 $ 107,147 S 134.047 Dividends and dividend equivalents declared per share or RSU S 3.00 $ 2.72 $ 2.40 See accompanying Notes to Consolidated Financial Statements. Apple Inc. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) Years ended September 28, September 29, September 30, 2019 2018 2017 $ 25,913 $ 20.289 $ 20,484 55,256 59,531 48,351 12,547 6,068 (340) (652) 10,903 5,340 (32,590) (444) 10,157 4,840 5,966 (166) 245 (289) 2,931 873 (1.923) (625) (4.700) 69,391 (5,322) 828 (8,010) (423) 9,175 (3) 38,449 77.434 (2,093) (2.723) (4,254) (5,318) 8,966 (593) 1,092 64,225 Cash, cash equivalents and restricted cash, beginning balances Operating activities: Net income Adjustments to reconcile net income to cash generated by operating activities: Depreciation and amortization Share-based compensation expense Deferred income tax expense/(benefit) Other Changes in operating assets and liabilities: Accounts receivable, net Inventories Vendor non-trade receivables Other current and non-current assets Accounts payable Deferred revenue Other current and non-current liabilities Cash generated by operating activities Investing activities: Purchases of marketable securities Proceeds from maturities of marketable securities Proceeds from sales of marketable securities Payments for acquisition of property, plant and equipment Payments made in connection with business acquisitions, net Purchases of non-marketable securities Proceeds from non-marketable securities Other Cash generated by/(used in) investing activities Financing activities: Proceeds from issuance of common stock Payments for taxes related to net share settlement of equity awards Payments for dividends and dividend equivalents Repurchases of common stock Proceeds from issuance of term debt, net Repayments of term debt Proceeds from/(Repayments of commercial paper, net Other Cash used in financing activities Increase/(Decrease) in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash, ending balances Supplemental cash flow disclosure: Cash paid for income taxes, net Cash paid for interest (39,630) 40,102 56,988 (10,495) (624) (1,001) 1,634 (1,078) 45.896 (71,356) 55,881 47,838 (13,313) (721) (1,871) 353 (159,486) 31,775 94,564 (12,451) (329) (521) 126 (124) (46,446) (745) 16.066 781 (2,817) (14,119) (66,897) 6,963 (8,805) (5,977) (105) (90,976) 669 (2,527) (13,712) (72,738) 6.969 (6,500) (37) 555 (1,874) (12,769) (32,900) 28,662 (3,500) 3,852 (87,876) (17,974) 24,311 50,224 5,624 25,913 $ (195) 20,289 $ $ $ $ 10,417 $ 15,263 3,423 11,591 2,092 $ $ 3,022 $