You are the CFO of Ford Motor Company (the company) considering taking on a project that requires $10 million in preliminary funding (in other words, the project will acquire $10 million in costs before it becomes profitable. Should the company undertake this project? Justify your opinion.
1) Current Rate of Return on Risk-Free Assets
2) Determine beta for Ford Motor Company
3) Deterine the Required Return on Market
4) Determine an approriate interest rate for loans on this amount of capital for a well-established company like Ford Company.
5) Determine the internal rate of return for Ford Motor Company using the financial tools at the website below
https://www.datadynamica.com/IRR.asp