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  3. ford motors expects a new hybrid-engine project to

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million...

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Accounting

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Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects these to grow at 4% each year. The upfront project costs are $420 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? A. $513 million B. $570 million C. $627 million D. $599 million

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