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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 Fords 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
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
Fords 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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