WACC 7.72% The firm is looking to expand its operations by 10% of the firm's...
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Finance
WACC 7.72%
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.) Apple Inc. currently has property and equipment as $72,705 (in millions) 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.
The following capital budgeting results for the project
Net present value
Internal rate of return
Discounted payback period.
please do it in excel
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