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Tesla is considering a new battery manufacturing facility with the following financial implications: Initial Investment: $2 billion Estimated Annual Revenue: $800 million Operating Costs: $500

  • Tesla is considering a new battery manufacturing facility with the following financial implications:
    • Initial Investment: $2 billion
    • Estimated Annual Revenue: $800 million
    • Operating Costs: $500 million annually
    • Depreciation Expense: $100 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.

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