Issuance costs for external finances

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Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $74 each year and expects these to grow at a rate of 0.05 each year. The upfront project costs are $559 and Ford's weighted average cost of capital is 0.07. If the issuance costs for external finances are $6, what is the net present value (NPV) of the project?

Reference no: EM13937376

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