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Given the soaring price of gasoline, Ford is considering introducing a new production line of gas - electric hybrid sedans. The expected annual unit sales

Given the soaring price of gasoline, Ford is considering introducing a new production line of gas
-
electric hybrid sedans. The expected annual unit sales of the hybrid cars is
3
6
,
0
0
0
; the price is $
2
1
,
0
0
0
per car. Variable costs of production are $
1
3
,
0
0
0
per car. The fixed overhead including salary of top executives is $
8
0
million per year. However, the introduction of the hybrid sedan will decrease Ford's sales of regular sedans by
7
,
0
0
0
cars per year; the regular sedans have a unit price of $
2
0
,
0
0
0
,
a unit variable cost of $
1
2
,
0
0
0
,
and fixed costs of $
2
5
0
,
0
0
0
per year. Depreciation costs of the production plant are $
5
2
,
0
0
0
per year. The marginal tax rate is
2
9
percent. What is the incremental annual cash flow from operations? Incremental annual cash flow from operations?

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