Otobai company in osaka japan is considering introduction


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 ¥17 billion. The cost of capital is 10%. The initial investment can be depreciated on a straight-line basis over the 10-year life of the project. Profits are taxed at a rate of 50%. Consider the following project estimates: Market size 1.3 million Market share .1 Unit price ¥ 600,000 Unit variable cost ¥ 560,000 Fixed cost ¥ 2.2 billion What is the NPV of the electric scooter project? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in billions rounded to 3 decimal places.) Net present value ¥ _________ billion

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Financial Management: Otobai company in osaka japan is considering introduction
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