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Business, 20.12.2019 23:31 raedusty3200

Assume 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 $20 million, what is the net present value (npv) of the project? a) $560 million
b) $616 million
c) $588 milliond) $504 million

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