Download - Future cars inc report
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FUTURE CARS INC. PRODUCT
STRATERGY DECISION
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PREVIEW
Future Cars Inc. is a high-tech, alternative-energy automobile company based in the Northeast Untied states.
The company has already designed and built an ultra-low emission vehicle (ULEV) that is selling well, but Future Cars must make a major decision about what kind of car to build and market in the future.
The basic car designs under consideration are:
1. Electric-gas hybrid vehicle2. Hydrogen fuel cell-powered vehicle that does
not use gasoline.
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This strategic decision has eight possible outcomes:
1. Hybrid electric technology (E)a. Recession and low gasoline price (R/L/E)b. Recession and high gasoline price (R/H/E)c. Boom and low gasoline price (B/L/E)d. Boom and high gasoline price (B/H/E)2. Fuel-cell technology (F)a. Recession and low gasoline price (R/L/F)b. Recession and high gasoline price (R/H/F)c. Boom and low gasoline price (B/L/F)d. Boom and high gasoline price (B/H/F)
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INCOME & CASHFLOW STATEMENT
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24%
37%
40%
Net Income after Taxes ( Cash Inflow)
$326,250,000.00 $505,755,960.00 $553,438,178.87
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33%
9%
22%
36%
End of year Cash on Hand (Available to invest)
$1,300,000,000.00
$373,750,000.00
$879,505,960.00
$1,432,944,138.87
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INTERNAL RATE OF RETURN
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SUMMARY OF KEY RESULTS
1 2 3 $-
$200,000,000.00
$400,000,000.00
$600,000,000.00
$800,000,000.00
$1,000,000,000.00
$1,200,000,000.00
$1,400,000,000.00
$1,600,000,000.00
Net Income After Taxes NAEnd-of-year cash on hand NA
Years
(U
S D
OLL
ARS)
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SCENARIO SUMMARY
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CONCLUSION
So, when there is a Boom and high gasoline price and Fuel-cell technology production then there will be internal rate of return of 85%.
When there is a Boom and high gasoline price and Hybrid electric technology production then there will be internal rate of return of 85%.