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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 22,000 ; and the selling price is $25,000 per car. Variable costs of production are $10,000 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 $48,000 per year. The marginal tax rate is 29 percent. What is the inkemental annual cash flow from operations? Incremental annual cash flow from operations \$ $ Cullumber Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.15 million. This investment will consist of $2.00 million for land and $10.15 million for trucks and other equipment. The land, all trucks, and all other equipment are expected to be sold at the end of 10 years for a price of $5.20 million, which is $2.35 million above book value. The farm is expected to produce revenue of $2.05 million each year, and annual cash flow from operations equals $1.95 million. The marginal tax rate is 25 percent, and the appropriate discount rate is 10 percent. Calculate the NPV of this investment. (Do not round foctor values. Round final answer to 2 decimal places, es. 5,275.25.) NPV $ The project should be

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