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How long must development last to change the? decision

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Reference no: EM131913138

FastTrack? Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $ 199,000 per year. Once in? production, the bike is expected to make $ 297,128 per year for 10 years. The cash inflows begin at the end of year 7. Assume the cost of capital is 9.2 %.

With costs remaining at $199,000 per? year, how long must development last to change the? decision?

Reference no: EM131913138

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