Question: Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects these to grow at 5% each

Ford Motors expects a new hybrid-engine project to produce incremental cash

Ford Motors expects a new hybrid-engine project to produce incremental cash flows of $50 million each year, and expects these to grow at 5% 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 $15 million, what is the net present value (NPV) of the project? ho O A. $856 million OB. $815 million O C. $897 million OD. $734 million Click to select your answer. ? MY Team

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