You work for Apple. After toiling away on $10.7 million worth of prototypes, you have finally produced your answer to Google Glasses: iGlasses (the name alone is genius). iGlasses 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 5 years until the next big thing comes along (or until users are unable to interact with actual human beings). Revenues are projected to be $454.6 million per year along with expenses of $354.7 million. You will need to spend $62.2 million immediately on additional equipment 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 $9.8 million. As the iGlasses are an outcome of the R&D center, Apple plans to charge $5.3 million of the annual costs of the center to the iGlasses product for 5 years. Finally, Apple's working capital levels will increase from their current level of $115.3 million to $139.8 million immediately. They will remain at the elevated level until year 5, when they will return to $115.3 million. Apple's discount rate for this project is 15.1% and its tax rate is 30%. Calculate the free cash flows and determine the NPV of this project. (Note: Assume that the opportunity cost must be after-tax and the equipment is put into use in year 1.) Year 2 Year 3 Year 4 Year 5 Year 6 $ ($ million) Year 0 Year 1 Sales $ 0.00 $ $ - Cost of Goods Sold 0.00 Gross Profit $ 0.00 $ $ 0.00 0.00 0.00 - Annual Charge Depreciation EBIT - Tax at 30% Incremental Earnings + Depreciation - Changes in NWC A EA A SA EA SA 0.00 EA EA A 0.00 ᏌᏊ 0.00 SA EA 0.00 0.00 0.00 0.00 0.00 - Capital Expenditures 0.00 0.00 0.00 0.00 0.00 0.00 - Opportunity Cost 0.00 0.00 0.00 0.00 0.00 0.00 Incremental FCFs

How in the world do I solve this one with my HP 10bll calculator? Do I use IRR/YR? What do I use? I feel like I am missing information

You and a few of your classmates decided to become entrepreneurs. You came up with a great idea for a new mobile phone application that you think will make lots of money. Your business plan won second place in a local competition, and you are using the $10,000 prize to support yourselves as you start your company.   Required:   Identify the key decisions you need to make to be successful entrepreneurs   Your company will need to exchange information with various external parties. Identify the external parties, and specify the information received from and sent to each of them.

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 9. What is block ownership? How does it affect corporate governance?

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 4. Suppose your company raises funds from outside lenders. What type of agency costs might occur? How might lenders mitigate the agency costs?

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 3. Suppose you need additional capital to expand, and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company.  Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions.  6. What is corporate governance? List five corporate governance provisions that are internal to a firm and under its control. What characteristics of the board of directors usually lead to effective corporate…

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 2. If you expanded and hired additional people to help you, might that give rise to agency problems? Explain your answer

Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 5. Suppose your company is very successful, and you cash out most of your stock and turn the company over to an elected board of directors. Neither you nor any other stockholders own a controlling interest (this is the…

A friend told you that she was scrolling through her Twitter feed and found out that three days ago, Hertz Corporation (rental car company) ordered 100,000 Tesla cars to build out its rental fleet of electric vehicles.  The cars will be delivered to Hertz throughout 2022 and Hertz will rent them to travelers.  Aside from the revenue from the Hertz sale, Tesla likes the deal since more people will be exposed to the Tesla brand.  They think this could boost future sales. Your friend said that this was her lucky day since she can buy Tesla stock and make some easy money when the stock price rises due to the increased sales of the cars.  What do you think of this situation and to the extent you are being asked for free advice what do you tell her?