Financial Management: Principles and Applications, 13/e

Study Questions

1. 12–1. As you saw in the introduction, the Toyota Prius took some of its sales away from other Toyota products. Toyota has also licensed its hybrid technology to Ford Motor Company, which allowed Ford to introduce a Ford Fusion hybrid in 2010 that traveled 39 miles per gallon (mpg), almost doubling the city efficiency of the non-hybrid Fusion. Obviously, this new Ford product will compete directly with Toyota’s hybrids. Why do you think Toyota licensed its technology to Ford?

2. 12–2. In Regardless of Your Major: The Internet on Airline Flights—Making It Happen on page 374, we described an investment proposal involving the sale of internet services on airlines. How would you approach the problem of calculating the cash flows for ...