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Otobai Company in Osaka, Japan is considering the introducti

Thesis Help Finance Otobai Company in Osaka, Japan is considering the introducti

Finance

Otobai Company in Osaka, Japan is considering the introducti

Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor… Show more 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 ¥16.50 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 1.25 million Market share 0.1 Unit price ¥ 550,000.0 Unit variable cost ¥ 510,000.0 Fixed cost ¥ 2.15 billion Required: What is the NPV of the electric scooter project? (Enter your answer in billions. Round your answer to 3 decimal places. Negative amount should be indicated by a minus sign. Omit the “¥” sign in your response.) ? Net present value ¥ billion • Show less

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