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(b) Skedaddle Scooter Co. is deciding whether or not it should build a new line of electric scooters. Development of a long-lasting battery will take
(b) Skedaddle Scooter Co. is deciding whether or not it should build a new line of electric scooters. Development of a long-lasting battery will take ve years and is expected to cost is $2 million per year (t=1, 2, 3, 4, 5). Once the battery is developed, the scooter is expected to make a pro t of $3 million per year for the following ve years (t=6, 7, 8, 9, 10). The project's cost of capital is 10%. (b,1) (4 points) What is the NPV of this scooter project? (b,2) (1 points) Should Skedaddle Scooter Co. go ahead with this project
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