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 29,000 ; and the selling price is $24,000 per car. Variable costs of production are $12,000 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 $52,000 per year. The marginal tax rate is 29 percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations Ivanhoe Supply Company wants to set up a division that provides copy and fax services to businesses. Customers will be given 20 days to pay for such services. The annual revenue of the division is estimated to be $23,900. Assuming that the customers take the full 20 days to pay, what is the incremental cash flow associated with accounts receivable? (Round intermediate calculation to 2 decimal places, e.g. 15.75 and final answer to the nearest whole dollar, e.g. 5,275. Use 365 days for calculation.) Incremental cashflow $ A division of Sunland City Highlands Manufacturing is considering purchasing a machine for $1,680,000 that automates the process of inserting electronic components onto computer motherboards. The annual cost of operating the machine will be $56,000, but it will save the company $414,000 in labor costs each year. The machine will have a useful life of 10 years, and its salvage value in 10 years is estimated to be $336,000. However, for tax purposes the initial purchase price of the machine will be depreciated straight-line to zero. If the marginal corporate tax rate is 32 percent and the appropriate discount rate is 12 percent, what is the NPV of this project? (Do not round discount factor. Round intermediate calculations and final answer to 0 decimal places, e.8. 5.275.) NPV of the project $ Carla Vista Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.05 million. This investment will consist of $2.90 million for land and $9.15 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 $5.00 million, which is $2.20 million above book value. The farm is expected to produce revenue of $2.10 million each year, and annual cash flow from operations equals $1.90 million. The marginal tax rate is 25 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Do not round factor values. Round final answer to 2 decimal places, e.g. 5.275.25.) NPV $ The project should be
