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MGMT 312 Module 9 Case study Problem




Question;Assume Polaris invested $2.12 million to expand its manufacturing capacity.Assume that these projects have a ten-year life and that management requires a 10% internal rate of return on these assets.What is the amount of annual cash flows that Polaris must earn from these projects to have a 10% internal rate of return? (Hint: Identify the ten-period, 10% factor from the present value of an annuity table, and then divide $2.12 million by the factor to get the annual required cash flows.)Assess Polaris?s most recent annual financial statements, from its website ( or the SEC?s website ( the amount that Polaris invested in capital assets for that year. (Hint: Refer to the statement of cash flows.)Assume a ten-year life and a 10% internal rate of return. What is the amount of cash flows that Polaris must earn on these new projects?


Paper#42139 | Written in 18-Jul-2015

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