Ford is evaluating a capital investment to convert it's current plant that produces Ford Focus to an electric Ford Ranger. Which of the following must Ford consider when evaluating this capital investment? O All of the sales revenue from the new electric Ford Ranger will be included and accounted for when determining future cash flows for NPV analysis. Ford will include any sales revenue from the Ford Focus in its future cash flows of the capital investment project. O Ford will need to deduct the current revenue from sales of the Focus when determining future cash flows of for the electric Ford Ranger project. O Ford does not consider the Ford Focus revenue as the two projects are independent.

Ford is evaluating a capital investment to convert it's current plant that produces Ford Focus to an electric Ford Ranger. Which of the following must Ford consider when evaluating this capital investment? O All of the sales revenue from the new electric Ford Ranger will be included and accounted for when determining future cash flows for NPV analysis. Ford will include any sales revenue from the Ford Focus in its future cash flows of the capital investment project. O Ford will need to deduct the current revenue from sales of the Focus when determining future cash flows of for the electric Ford Ranger project. O Ford does not consider the Ford Focus revenue as the two projects are independent.

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 53P

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