You won bon worth of your proced your ow to Coogeen winy.com te wonen ures with the womandante y song and Youthwortve yang comes og for at bot with can be pod 5450 per year bewed 45 milion you wiled to spend moment we enge year MACRA you will thum milion As the come RAD Apple och mest of the these produd for at your new we will come11033.mediately they want to cover you want to start wonde NPV spoject (Nor Assay cober Year 3 Year 5 Year 4 Calculate the free cash flows below (Round to two decimal places.) ($ million) Year 0 Year 1 Year 2 Sales S 0.00 $ $ Year 6 S S $ GA $ S Cost of Goods Sold 0.00 $ Gross Profit 0.00 $ $ $ S S $ $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Annual Charge - Depreciation 6 $ $ EBIT $ $ $ S $ - Tax $ $ $ S $ Incremental Earnings Depreciation - Incremental Working Capital - Capital Investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 00 0.00 0.00 0.00 - Capital Investment - Opportunity Cost Incremental Free Cash Flow 0.00 0.00 0.00 $ $ $ $ $ You work for Apple After toding away on 510 5 million worth of prototypes you have finally produced your answer to Google Glasses Glasses (the name alone is genius) Glasses will instantly transport the wearer into the world as Apple wants him to experience it iTunes with the wink of an eye and apps that can be activated just by looking at them You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings) Revenues are projected to be $4566 million per year along with expenses of $347 2 million. You will need to spend $55.9 million immediately on additional equipmen that will be depreciated using the 5-year MACRS schedule Additionally, you will use some fully depreciated existing equipment that has a market value of $0 1 million As the Glasses aro an outcome of the R&D center, Apple plans to charge 54 7 million of the annual costs of the center to the Glassos product for four years Finally, Apple's working capital levels will increase from their current level of $1166 million to 51398 million immediately They will remain at the elevated lovel until year 4 when they will return to $1166 milion Apple's discount rate for this project is 147% and its tax rate is 21% Calculate the free cash flows and determine the NPV ot this project (Noto Assume that the opportunity cost must be after tax and the equipment is put into use in your 1) Year 3 4966 $ Year 4 456 6 Year 5 Year 6 4560 $ 4566 Calculate the free cash flows below (Round to two decimal places) (5 million) Year 0 Year 1 Year 2 Sales $ 0.00 $ 456 6 5 456 6 5 Cost of Goods Sold 0.00 Gross Profit $ 0.00 $ $ $ Annual Charge 000 0.00 000 - Depreciation EBIT S $ $ $ S $ 000 0.00 0.00 0.00 $ $ $ - Tax 5 $ S 0.00 Incremental Earnings Depreciation - Incremental Working Capital Capital Investment - Opportunity Cost Incremental Free Cash Flow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 000 SLS 0.00 18 You won bon worth of your proced your ow to Coogeen winy.com te wonen ures with the womandante y song and Youthwortve yang comes og for at bot with can be pod 5450 per year bewed 45 milion you wiled to spend moment we enge year MACRA you will thum milion As the come RAD Apple och mest of the these produd for at your new we will come11033.mediately they want to cover you want to start wonde NPV spoject (Nor Assay cober Year 3 Year 5 Year 4 Calculate the free cash flows below (Round to two decimal places.) ($ million) Year 0 Year 1 Year 2 Sales S 0.00 $ $ Year 6 S S $ GA $ S Cost of Goods Sold 0.00 $ Gross Profit 0.00 $ $ $ S S $ $ 0.00 0.00 0.00 0.00 0.00 0.00 0.00 - Annual Charge - Depreciation 6 $ $ EBIT $ $ $ S $ - Tax $ $ $ S $ Incremental Earnings Depreciation - Incremental Working Capital - Capital Investment 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 00 0.00 0.00 0.00 - Capital Investment - Opportunity Cost Incremental Free Cash Flow 0.00 0.00 0.00 $ $ $ $ $ You work for Apple After toding away on 510 5 million worth of prototypes you have finally produced your answer to Google Glasses Glasses (the name alone is genius) Glasses will instantly transport the wearer into the world as Apple wants him to experience it iTunes with the wink of an eye and apps that can be activated just by looking at them You think that these will sell for five years until the next big thing comes along (or until users are unable to interact with actual human beings) Revenues are projected to be $4566 million per year along with expenses of $347 2 million. You will need to spend $55.9 million immediately on additional equipmen that will be depreciated using the 5-year MACRS schedule Additionally, you will use some fully depreciated existing equipment that has a market value of $0 1 million As the Glasses aro an outcome of the R&D center, Apple plans to charge 54 7 million of the annual costs of the center to the Glassos product for four years Finally, Apple's working capital levels will increase from their current level of $1166 million to 51398 million immediately They will remain at the elevated lovel until year 4 when they will return to $1166 milion Apple's discount rate for this project is 147% and its tax rate is 21% Calculate the free cash flows and determine the NPV ot this project (Noto Assume that the opportunity cost must be after tax and the equipment is put into use in your 1) Year 3 4966 $ Year 4 456 6 Year 5 Year 6 4560 $ 4566 Calculate the free cash flows below (Round to two decimal places) (5 million) Year 0 Year 1 Year 2 Sales $ 0.00 $ 456 6 5 456 6 5 Cost of Goods Sold 0.00 Gross Profit $ 0.00 $ $ $ Annual Charge 000 0.00 000 - Depreciation EBIT S $ $ $ S $ 000 0.00 0.00 0.00 $ $ $ - Tax 5 $ S 0.00 Incremental Earnings Depreciation - Incremental Working Capital Capital Investment - Opportunity Cost Incremental Free Cash Flow 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 000 0.00 0.00 000 SLS 0.00 18