What is the relevant initial investment cost to use

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Problem 1: Apple Inc. wants to develop a new operating system to replace the current MacOS. The total investment cost at time 0 is $1,000,000. The present value of the project including debt financing is $306,121. Considering that Apple has a debt-to-equity ratio of 0.22 and that It uses the flow-to-equity approach, what is the relevant initial investment cost to use in determining the value of the project?

Reference no: EM132931489

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