What is the net present value-npv of the project

Assignment Help Financial Econometrics

Reference no: EM13336434

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $100 million each year and expects these to grow at 4% each year. The upfron project costs are $900 million and ford's weighted average cost of capital is 9%. If the issuance costs for external fincances are $10 million what is the net present value (NPV) of the project?

Reference no: EM13336434

Questions Cloud

Who make buying decisions for organizations : Who make buying decisions for organizations

How to calculate the annual production of carbon dioxide : Calculate the annual production of carbon dioxide in kg if there are 40 million cars in the US and each car covers a diastase of 5000 miles at a consumption rate of 20 mpg.

Compute the customer margin for the anderson family : Company decides instead to use a traditional costing system in which ALL costs are allocated to customers on the basis of cleaninghours. Compute the margin for the Anderson family and calculated by multiplying the decline in jobs times the activity..

What is the bouyant force exerted on the balloon : A balloon inflated with helium (density .2 kg/m^3). If the density of air is 1.3 kg/m^3, what is the bouyant force exerted on the balloon

What is the net present value-npv of the project : The upfron project costs are $900 million and ford's weighted average cost of capital is 9%. If the issuance costs for external fincances are $10 million what is the net present value (NPV) of the project

Insuring each of the regions separately why is that : Suppose the insurance company can also cover the NE and SW Regions under a single insurance contract rather than two separate policies. The total premium under the combined policy is less than the total cost (sum of the two premiums) for insuri..

What is the intensity of light incident on the retina : A 2.0-mW laser pointer has a beam diameter of 1.7 mm. When it is accidentally pointed at a person's eye, What is the intensity of light incident on the retina

Evaluate the annual production of carbon dioxide : One gallon of gasoline in an automobiles engine produces on the average 9.50 kg of carbon dioxide. Calculate the annual production of carbon dioxide in kg if there are 40 million cars in the US and each car covers a diastase of 5000 miles at a con..

Case study - retired professor housecleaning : Compute the activity rates for all the activity cost pools and using the activity-based costing system, compute the customer margin for the Anderson family.

User Account

All Pages