Order the answer to: Ford Motors expects a new hybrid-engine project to produce incremental

Order the answer to: Ford Motors expects a new…

Question	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 (NPV) of the project? A) 1800 million b) 1290 million c) 1100 million d) 1090 million
Subject	business-corporate-finance

Question

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 (NPV) of the project?
A) 1800 million
b) 1290 million
c) 1100 million
d) 1090 million

Subject

business-corporate-finance

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