Assume Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $45 million each year, and expects these to grow at 3% each year. The upfront project costs are $380 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) $324 million
B) $378 million
C) $360 million
D) $396 million
Answer: C
Business
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Which of the following are advantages of simultaneous engineering?
I. Time to market is reduced. II. Avoids the need for marketing and design to work together. III. Less communication is necessary. A) I and III only are true. B) I and II only are true. C) II and III only are true. D) I only is true. E) I, II and III are true.
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