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Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor… 1 answer below » Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor scooter for city use. The scooter project requires an initial investment of ¥15 billion. The cost of capital was assumed to be 10%. The initial investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%. Consider the following estimates for the scooter project. Market Size 1.1 million Market Share 0.1 Unit Price ¥ 400,000.0 Unit Variable Cost ¥ 360,000.0 Fixed Cost ¥ 2.0 billion What is the NPV of the electric scooter project? (Negative View complete question » Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor scooter for city use. The scooter project requires an initial investment of ¥15 billion. The cost of capital was assumed to be 10%. The initial investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%. Consider the following estimates for the scooter project. Market Size 1.1 million Market Share 0.1 Unit Price ¥ 400,000.0 Unit Variable Cost ¥ 360,000.0 Fixed Cost ¥ 2.0 billion What is the NPV of the electric scooter project? (Negative amount should be indicated by a minus sign. Enter your answer in billions. Do not round intermediate calculations. Round your answer to 2 decimal places.) Net present value ¥ ______________ billion View less » Jul 29 2015 02:58 PM
