I have attached the Case Study below.
Case Study: 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 (? HYPERLINK “http://www.polaris.com/” o “website opens in a new window” t “_new” ?polaris.com?) or the SEC’s website (? HYPERLINK “http://www.sec.gov/” o “website opens in a new window” t “_new” ?sec.gov?). a. Determine the amount that Polaris invested in capital assets for that year. (Hint: Refer to the statement of cash flows.) b. 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?