Otobai is considering still another production method for

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Otobai is considering still another production method for its electric scooter. It would require an investment of $15.45 billion in addition to the initial investment of $15.45 billion but would reduce variable costs by $49,000 per unit. The cost off capital was assumed to be 13%. The total investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%.

Reference no: EM13616768

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