What is the net present value of ford motors

Assignment Help Business Economics
Reference no: EM132118440

Ford Motors expects a new? hybrid-engine project to produce incremental cash flows of $ 95 million each year and expects these to grow at 4?% each year. The upfront project costs are? $900 million and? Ford's weighted average cost of capital is 10 %.??If the issuance costs for external finances are $ 20 ?million, what is the net present value? (NPV) of the? project?

Reference no: EM132118440

Questions Cloud

The occurrence of motor-vehicle injuries and fatalities : Research the effect of primary and secondary seat belt laws on the occurrence of motor-vehicle injuries and fatalities.
Describe the evaluation describing business structure : Identify and describe the legal categories of a business organization contrasting tax-related advantages and disadvantages.
True of enhancing organizational performance : Which of the following statements is true of enhancing organizational performance?
What happens to the level and growth rate of per capita gdp : An earthquake: Consider a Solow economy that begins in steady state. Then a strong earthquake destroys half the capital stock.
What is the net present value of ford motors : If the issuance costs for external finances are $ 20 ?million, what is the net present value? (NPV) of the? project?
Upon his discharge from the air force : Upon his discharge from the Air Force, Sheldon decided to attend college. Because of the expense of housing,
Discuss effect of technology transfer on economic growth : Technology transfer in the Solow model: One explanation for China's rapid economic growth during the past several decades is its expansion of policies.
Behavioral equations of households : In a closed economy, the behavioral equations of households, firms and government are given below:
Draw a graph showing how output evolves over time : A decrease in the investment rate: Suppose a country enacts a tax policy that discourages investment, and the policy reduces the investment rate immediately.

Reviews

Write a Review

Business Economics Questions & Answers

  Discuss importance of sales strategies

Discuss the importance of sales strategies and give examples of some typical strategies that might be pursued. Indicate why it is important for the sales manager to determine effective strategies for his or her sales force.

  Highlight the subprime mortgage crisis

Highlight the subprime mortgage crisis that rocked the financial market in the late 1990's and its aftermath. The report should be conclusive and should not exceed 2000 words.

  Evidence of association between color and texture

Is there evidence of association between color and texture for these limestones? Explain your answer.

  What is the advertising cost per potential customer

Suppose the cost of producing a 30 second commercial for television is $100,000. If airtime on the evening news costs $200,000 and is viewed by 5 million people, what is the advertising cost per potential customer?

  Does a clustered index have to be created on the primary key

Does a clustered index have to be created on the primary key column? What are the type of Triggers?

  Market rate of substitution

What is the market rate of substitution between food and "all other goods"? On the same graph, show how the Food Stamp program alters the average consumer's budget line. Would this consumer benefit from illegally exchanging food stamps for cash? E..

  Borrowing exceeds firms decrease in borrowing

In January, the interest rate is 5 percent and firms borrow $50 billion per month for investment projects. In February, the Federal government doubles its monthly borrowing from $25 billion to $50 billion. That drives the interest rate up to 7 percen..

  Utilize a supply and demand model to model this phenomenon

The article also notes that, as a consequence of the rent control laws, the price of owner occupied housing has increased greatly. Utilize a supply and demand model to model this phenomenon as well.

  Profits in the futures market

Explain the ways that a speculator can make profits in the futures market. When should a speculator purchase a put option denominated in Australian dollars?

  Explain the emergence of an anti-globalization movement

What is globalization (please define it both as a process and outcome)? What factors can you identify in explaining why globalization occurred? How do you assess its impact upon both rich countries and poor ones, in particular, the issue of inequalit..

  Cause the turnaround at the peak of the cattle price cycle

Explain why industry expansion in response to rising prices will put even more upward pressure on price in the cattle price cycle. What happens to finally cause the turnaround at the peak of the cattle price cycle?

  Labour underutilisation rate

If over two periods, the unemployment rate had reduced from 6.5 per cent to 5.5 per cent and the measured labour underutilisation rate had reduced

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd