Calculate the npv of investment opportunity

Assignment Help Business Management
Reference no: EM132238952

FastTrack? Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $208,900 per year. Once in? production, the bike is expected to make 294,566 per year for 10 years. The cash inflows begin at the end of year 7. For parts? d-f, assume the cost of capital is 13.4%.

d. Calculate the NPV of this investment opportunity. Should the company make the? investment?

e. How much must this cost of capital estimate deviate to change the? decision?

f. How long must development last to change the? decision?

Reference no: EM132238952

Questions Cloud

Quality improvement will work in many organizations : Outsourcing can be risky so need to evaluate long term benefits very carefully. Crosby's 14 steps to Quality Improvement will work in many organizations because
What is the nature of the universe : In 250-300 words, explain the Christian perspective of the nature of spirituality and ethics in contrast to the perspective of postmodern relativism.
What are some of the effective strategies being implemented : What are some of the effective strategies being implemented by the CJS to prevent and combat cybercrimes?
Since organizations involve many components and systems : Change involves moving from one circumstance or situation to another. Since organizations involve many components and systems,
Calculate the npv of investment opportunity : Calculate the NPV of this investment opportunity. Should the company make the? investment?
Discuss cultural diversity and ethnic minority psychology : Describe the menu that your group chose to further explore for your topic Briefly describe your selection criteria of the menu
What is the importance of each data source : Identify five sources of data available at the federal level. What is the importance of each data source in public health funding and surveillance?
Health insurance business-before : What does it take to be successful in the health insurance business-before and after the Affordable Care Act (ACA) (aka, "ObamaCare")?
Determine the maximum deviation allowable : Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

Reviews

Write a Review

Business Management Questions & Answers

  What are some characteristics of effective leaders

What are some characteristics of effective leaders? Give an example of an effective leader you know, and explain why and how s(he)vis effective.

  What do you consider your life purpose

In this chapter of Daniel Pink's book, Drive, Pink discusses the concept of purpose, setting goals, and attaining the "good life."

  Assess how a change agent can influence the generation

Assess how a change agent can influence the generation, direction, success or failure of a change initiative.

  Context of international tourism

In the context of international tourism, discuss with examples, the reasons why the East Asia/Pacific region is the fastest growing international tourist generating region.

  Regulations for a foreign firm entering in japan

What are the regulations for a foreign firm entering in Japan. Cite laws rules, etc. Also what kind of law does japan follow, is it different from USA?

  Wedding lists a voyage from tradition to cash valuewith

wedding lists a voyage from tradition to cash valuewith spring the wedding season starts again. in 2006 in france

  Particular abbreviation being wrong for a patient

Discuss the dangers of that particular abbreviation being wrong for a patient. What can happen?

  Development of health insurance in the united states

In a two to three page paper, explain the development of health insurance in the United States. Include a brief discussion as to the current state of both traditional health insurance and managed care. Is traditional health insurance still a viabl..

  Leadership and entrepreneurship

Llong assignment that is about strategic leadership and entrepreneurship. My company example is a leadership consulting firm that develops leadership skills in existing corporations. The questions are pertaining to this company I have created and the..

  Relevant data from operating budget

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2014 are:

  Without circuit-breaker relief

a. What property tax would they pay without circuit-breaker relief? b. For how much circuit-breaker relief are they eligible

  Problem regarding the organization selection

The initial step in developing your strategic management plan project is to select a health care organization. For more information on organization options, refer to the course project description. After you have determined an organization you wan..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd