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

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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