Question: Net present value -- Week 4 -- Practice Set:Acquisition stage cash flow:Cost of developing the automated technology(in millions of dollars)Operating stage cash flow:Year 02022202320242025202620272028202920302031Number of
Net present value -- Week 4 -- Practice Set:Acquisition stage cash flow:Cost of developing the automated technology(in millions of dollars)Operating stage cash flow:Year 02022202320242025202620272028202920302031Number of units sold with this feature (not in millions)Premium charge per vehicleAll amounts below are in millions:Sales (in millions)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Fixed Cost of updating the technologyVariable Cost of installing the technology Amortization of the development costsTaxable income Taxes at 28%-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ After tax income Add back amortization-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Operating cash flows-$ Disposition stage cash flow:Total cash flowPresent ValueNet Present Value Number of share of common stock outstanding Expected increase in value per share Please open the Excel spreadsheet and enter these given data in the appropriate fields. Then complete thecalculations in the yellow fields to eventually calculate the net present value and price per share impact. GoodLuck.Project information: XXX Motors is evaluating a large investment into a self-driving/ safety project. Relevantcosts and benefits are listed below - remember that some of these are inflows and others are outflows of cash:Cost to develop the technology $8,000,000,000.Additional revenue per vehicle sold $1200.Number of cars sold with this feature 2,000,000.Fixed Cost to update the technology $100,000,000.Variable cost of installation per vehicle $100Amortization of the cost to develop the technology $80,000,000.Tax rate 28%Disposition value of technology $0Weighted average cost
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