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You are the CFO of Ford Motor Company (the company) considering taking on a project that requires $10 million in preliminary funding (in other words, the project will acquire $10 million in costs before it becomes profitable. Should the company undertake this project? Justify your opinion.

1) Current Rate of Return on Risk-Free Assets

2) Determine beta for Ford Motor Company

3) Deterine the Required Return on Market

4) Determine an approriate interest rate for loans on this amount of capital for a well-established company like Ford Company.

5) Determine the internal rate of return for Ford Motor Company using the financial tools at the website below

http://www.datadynamica.com/IRR.asp

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9794836
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