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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 ; the 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 hybrid sedan 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 production plant 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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