Given the soaring price of gasoline, Ford is considering introducing a new production line of gas-electric hybrid sedans. Th e expected annual unit sales of the hybrid cars is 30,000; the price is $22,000 per car. Variable costs of production are $10,000 per car. Th e fi xed overhead including salary of top executives is $80 million per year. However, the introduction of the hybrid sedan will decrease Fords sales of regular sedans by 10,000 cars per year; the regular sedans have a unit price of $20,000, a unit variable cost of $12,000, and fi xed costs of $250,000 per year. Depreciation costs of the production plant are $50,000 per year. Th e marginal tax rate is 40 percent. What is the incremental annual cash fl ow from operations? 11.20 FCF and NPV for a project: