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What is the net present value of the project

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Question - Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $66 million each year and expects these to grow at a rate of 3% each year. The upfront project costs are $896 million and Ford's weighted average cost of capital is 8%. If the issuance costs for external finances are $7 million, what is the net present value (NPV) of the project?

Reference no: EM132959858

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