Hybrid-engine project-what is net present value of project

Assignment Help Financial Management
Reference no: EM131552667

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $74 million each year and expects these to grow at a rate of 0.05 each year. The upfront project costs are $724 million and Ford's weighted average cost of capital is 0.08. If the issuance costs for external finances arc $9 million, what is the net present value (NPV) of the project?

Round to nearest whole number. Give answer in millions without commas or dollar signs. Do not include the words millions. For example, write $34 million as 34

Reference no: EM131552667

Questions Cloud

Find the charge-to-mass ratio of an individual hydrogen ion : Faraday's work led to the realization that a mole of electric charges is about 96 500C and that this amount of charge releases 1.008g of hydrogen.
Discuss advantage and disadvantages of lease versus purchase : Discuss the advantages and disadvantages of lease versus purchase. Summarize the central factors that shaped your decision to recommend lease or purchase.
How many moles of gas molecules are produced at the cathode : In an electrolysis experiment a current of 0.5 amperes flowing for 20 min (1200s) liberates 69.6mL of gas at the cathode and 23.3mL at the anode.
How might you handle a make-buy decision : Given that you may not be able to identify ALL relevant items, how might you handle a make-buy decision? How has situation changed since the beginning of 2017?
Hybrid-engine project-what is net present value of project : If the issuance costs for external finances arc $9 million, what is the net present value (NPV) of the project?
How many excess electrons are there on this droplet : A droplet 10 µm in radius will fall in air at a steady velocity of 1.1cm/s because its weight mg (m is its mass, g is the acceleration due to Earth's gravity).
How much of your money should be invested in the risky asset : You plan to invest $10,000 in a “complete” portfolio. how much of your money (in dollars) should be invested in the risky asset?
What is the effect of payment methods on coding : Explain medical necessity and how it impacts payment.What is the effect of payment methods on coding?
What did thomson work reveal about cathode rays : Faraday's work led to the realization that 96 500C of charge will cause 1 mole of hydrogen or of silver or of chlorine to evolve from electrolysis.

Reviews

Write a Review

Financial Management Questions & Answers

  How much interest will you end up paying over life of loan

Suppose that you take out a loan for $300000 to purchase a house. You are required to make monthly payments, and the APR is 6%. How much interest will you end up paying over the life of the loan (30 year mortgage)?

  The level of risk is same for the two alternatives

Suppose you have $10,000 you wish to invest. explain whether you would be better off putting your money in the foreign or domestic alternative presented.

  About the rate anticipation

Rate anticipation is?

  Portfolio equally invested in risk-free asset and two stocks

You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.6, and the total portfolio is exactly as risky as the market, what must the beta be for the other stock in your portfolio?

  Bond price-maturity and market interest rate

Compute the price of a 5.5 percent coupon bond with 15 years left to maturity and a market interest rate of 8.8 percent.

  Concepts of the historical weighted average cost of capital

Discuss the difference between the concepts of the historical weighted average cost of capital and the marginal cost of capital

  International auction market

the two firms controlled 95 percent of the international auction market.

  Publicly traded company based on that like capital budget

Select a current issue for which there is a background material. With the issue build a budget request that provides a solution to the issue. If a solution is already publicly available, work through the data so that you can re-create the budget requ..

  The reserve requirements for demand deposits

The central bank decreases the reserve requirements for demand deposits from 15% to 12% when a bank receives $600 million in deposits. Estimate the impact on the total loans distributed into the economy before and after the change in reserve requirem..

  Capital to start-additional net working capital investments

Production of the implants will require $1,530,000 in net working capital to start and additional net working capital investments each year equal to 20 percent of the projected sales increase for the following year. Total fixed costs are $1,430,000 p..

  Discuss accounts receivables-accounts payables

Discuss and explain in detail why and how you create a financial plan including ratio and break-even analyses. Discuss accounts receivables, accounts payables, and inventories and include the steps in creating a cash budget, introduce how to plan for..

  The current price of non-dividend-paying stock

The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $36 or fall to $26. Assume the risk-free rate is zero. I. What long position in the stock is necessary to hedge a short call option when the s..

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