Future Cars Inc. is an alternative energy automotive company that must decide whether to develop an electric-gas hybrid vehicle or hydrogen fuel cell vehicle for its next model. This strategic decision could play out under various economic conditions, including recession or boom, and low or high gasoline prices, resulting in eight possible outcomes. The document analyzes the financial projections, including income, cash flow, and internal rate of return, for each scenario to help inform Future Cars' product strategy decision.

1. FUTURE CARS
INC. PRODUCT
STRATERGY
DECISION

2. 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 vehicle
2. Hydrogen fuel cell-powered vehicle that does not
use gasoline.

3.  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)

4. INCOME & CASHFLOW
STATEMENT

5. 24%
36%
40%
Net Income after Taxes ( Cash Inflow)
$326,250,000.00
$505,755,960.00
$553,438,178.87

6. 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

7. INTERNAL RATE OF RETURN

8. SUMMARY OF KEY RESULTS
$-
$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
1 2 3
(USDOLLARS)
Years
Net Income After Taxes NA
End-of-year cash on hand NA

9. SCENARIO SUMMARY

10. 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%.