Marketable Securities are the securities which are liquid in nature and can be easily converted into cash. Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc. Requirement 1: We have to determine the amount of annual cash flow of Apple.

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Assume Apple invested $2.12 billion to expand its manufacturing capacity. Assume that these assets have a 10-year life and that Apple requires a 10% internal rate of return on these assets. Required 1. What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal rate of return? Hint: Identify the 10-period, 10% factor from the present value of an annuity table, and then divide $2.12 billion by this factor to get the annual cash flows necessary 2. Access Apple’s financial statements for the fiscal year ended September 30, 2017, from Appendix A. a. Determine the amount that Apple invested in capital assets for 2017. Hint: Refer to the statement of cash flows. b. Did Apple invest more in capital assets or in marketable securities for 2017?

Assume Apple invested $2.12 billion to expand its manufacturing capacity. Assume that these assets have a 10-year life and that Apple requires a 10% internal rate of return on these assets. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Required1. What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal rate of return? (Hint: Identify the 10-period, 10% factor from the present value of an annuity table, and then divide $2.12 billion by this factor to get the annual cash flows necessary.)2. Access Apple’s financial statements for the fiscal year ended September 30, 2017, from Appendix A.a. Determine the amount that Apple invested in capital assets for 2017. Hint: Refer to the statement of cash flows.b. Did Apple invest more in capital assets or in marketable securities for 2017? What is the amount of annual cash flows that Apple must earn from these projects to have a 10% internal…

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $819,822, $863,275, $937,250, $1,018,112, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

Answer 2

Question

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Answer 6

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

Answer 7

Chapter 11, Problem 1AA

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 1:

We have to determine the amount of annual cash flow of Apple.

Answer 8

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

Answer 9

To determine

Concept introduction:

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2a:

To explain:

We have to determine the amount that Apple invested in capital asset for year 2017.

Answer 10

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Answer 11

To determine

Concept introduction:

Marketable Securities are the securities which are liquid in nature and can be easily converted into cash.

Capital Assets are the assets that are generally long term asset i.e. having useful life for more than one year and the capital asset are generally not intended for sale in the normal course of business operations. These are generally properties (movable and immovable), tangible or in tangible, etc.

Requirement 2b:

To explain:

We have to determine whether Apple invested more in capital asset or in marketable securities for year 2017.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - What is capital budgeting?Ch. 11 - Identify four reasons that capital budgeting...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

Solution Summary: The author explains that Marketable Securities are liquid in nature and can be easily converted into cash. Capital Assets are long-term assets that are not intended for sale.

Want to see the full answer?

Chapter 11 Solutions