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 is 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? |

Net present value | ¥ - billion |

Subject | Mathematics |

Due By (Pacific Time) | 08/01/2015 12:00 am |

Tutor | Rating |
---|---|

pallavi Chat Now! |
out of 1971 reviews More.. |

amosmm Chat Now! |
out of 766 reviews More.. |

PhyzKyd Chat Now! |
out of 1164 reviews More.. |

rajdeep77 Chat Now! |
out of 721 reviews More.. |

sctys Chat Now! |
out of 1600 reviews More.. |

sharadgreen Chat Now! |
out of 770 reviews More.. |

topnotcher Chat Now! |
out of 766 reviews More.. |

XXXIAO Chat Now! |
out of 680 reviews More.. |