• Tesla is considering a new battery manufacturing facility with the following financial implications:
  • Initial Investment: $2.5 billion
  • Estimated Annual Revenue: $900 million
  • Operating Costs: $550 million annually
  • Depreciation Expense: $120 million annually
  • Tax Rate: 25%

• Requirements:
  1. Calculate the annual net income from the new facility.
  2. Prepare a five-year income projection for the battery manufacturing facility.
  3. Analyze the payback period for the initial investment.
  4. Discuss the strategic benefits of the new facility for Tesla’s supply chain.
  5. Evaluate the risks and potential environmental impact of the new facility.