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QUESTION 4 Imagine you are the CFO for Ford Motors, and are considering buying a new facility. The facility costs you $220 Million today, and
QUESTION 4 Imagine you are the CFO for Ford Motors, and are considering buying a new facility. The facility costs you $220 Million today, and would help you launch a new line for cars produced for the next 7 years. If your discount rate is 6%, based on the cash flows below, would you accept the project? Year Cash Flow 30 Million 40 Million 1 2 3 4 50 Million 60 Million 50 Million 40 Million 5 6 7 30 Million
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