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 require $10 million in costs before it becomes profitable.
This project would be designed to develop a new fuel saving device (not a new engine) that could be added to all models of passenger vehicles sold by Ford Motor Company. The new fuel savings device would add $2500.00 to each vehicle sold by Ford Motor Company (passenger vehicles). It is assumed that 90% of the passenger vehicles sold would be sold with this devise. The expected fuel savings (in dollars) for each passenger vehicle owner (based on an average of $5.00/gal) would be 15% per year.
Research the Internet to find out information on Ford Motor Company’s balance sheet, income statement, statement of retained earnings and statement of cash flows for the most current year reported.
There are several specific questions that must be addressed in this research paper before a decision on moving ahead with this project is made. Based on your research of the most recent financial statements for this company and the financial markets address the following issues: