Ford motors expects a new hybrid-engine project to produce


Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $100 million each year and expects these to grow at 4% each year. The upfront project costs are $900 million and Ford's weighted average cost of capital is 9%. If the issuance costs for external finances are $10 million, what is the net present value (NPV) of the project?

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Financial Management: Ford motors expects a new hybrid-engine project to produce
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