Decided to expand its production of hybrid transit buses

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Reference no: EM132072204

New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of $40 million per year for the next 10 years. The upfront cost of the expansion is $150 million, and there are additional issuance costs for external financing of $15 million. If the New Flyer's WACC is 7.5%, what is the NPV of the project?

Reference no: EM132072204

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