Assume research in motion invested 834 million to expand

Reference no: EM13578074

Assume Research In Motion invested $834 million to expand its manufacturing capacity. Assume that these assets have a seven-year life, and that Research In Motion requires a 12% internal rate of return on these assets.

Required 1. What is the amount of annual cash flows that Research In Motion must earn from these projects to have a 12% internal rate of return? (Hint: Identify the seven-period, 12% factor from the present value of an annuity table, and then divide $834 million by this factor to get the annual cash flows necessary.) please answer correctly and go step by step if possible!

Reference no: EM13578074

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