Question
New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of$40 million per year for the
New Flyer Industries has decided to expand its production of hybrid transit buses. The firm expects incremental cash flows of$40 million per year for the next 10 years. The upfront cost of the expansion is$150 million, and there are additional issuance costs for external financing of$15 million. If the NewFlyer's WACC is7.5%, what is the NPV of theproject?
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Personal Finance
Authors: Jeff Madura, Hardeep Singh Gill
3rd Canadian Edition
978-0133035575, 133035573, 978-0133970524, 133970523, 978-0134040042
