Toyota is planning a new fuel cell powered car. It will cost $1.4 billion initially...
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Toyota is planning a new fuel cell powered car. It will cost $ billion initially and an additional $ billion the year after to build the factory, which can then be linearly depreciated to zero over years, and be sold for $ million at the end of year The company also has to put up $ million to buy components just before operation starts at the beginning of year For each of the years of operation years to Toyota expects to sell million cars at a price of $ Labor and components for each car add up to $ per car. After completion at the end of year it also costs $ million each year to run the factory, independent of the level of production.Toyota's marginal tax rate is and its cost of capital for this project is Part
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What is the present value of the cash flow from assets from year to ignoring the one for year for nowin $ million
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