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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, Finance

Category:- Financial Management
Reference No.:- M92392468

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