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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