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Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric sedans. The expected annual unit sales of the

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Given the desire to cut carbon emissions, Ford is considering introducing a new production line of electric sedans. The expected annual unit sales of the electric cars is 39,000; and the selling price is $22,000 per car. Variable costs of production are $14,000 per car. The fixed overhead, including salary of top executives is $80 million per year. However, the introduction of the electric sedans will decrease Ford's sales of regular sedans by 8,000 cars per year; the regular sedans have a unit price of $20,000, a unit variable cost of $12,000, and fixed costs of $250,000 per year. Depreciation costs of the new production line are $51,000 per year. The marginal tax rate is 29 percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations Blossom Lumber, Inc., is considering purchasing a new wood saw that costs $80,000. The saw will generate revenues of $100,000 per year for five years. The cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. The machine is expected to sell for $2,400 at the end of its five-year life and will be depreciated on a straight-line basis over five years to zero. Blossom's tax rate is 26 percent, and its opportunity cost of capital is 12.30 percent. What is the project's NPV? (Do not round intermediate calculations. Round final answer to 0 decimal places, e. 5. 275.) NPV $ Should the company purchase the saw? The company hesaw

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