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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
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 ; and the selling price is $ per car. Variable costs of production are $ per car. The fixed overhead, including salary of top executives is $ million per year. However, the introduction of the electric sedans will decrease Ford's sales of regular sedans by cars per year; the regular sedans have a unit price of $ a unit variable cost of $ and fixed costs of $ per year. Depreciation costs of the new production line are $ per year. The marginal tax rate is percent. What is the incremental annual cash flow from operations?
Incremental annual cash flow from operations
$
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