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Brompton bikes is thinking of developing a folding bike. Development will take 6 years and the cost is $185.000 per year. Once in production, the
Brompton bikes is thinking of developing a folding bike. Development will take 6 years and the cost is $185.000 per year. Once in production, the bike is expected to make $259.000 per year for 10 years. Assume the cost of capital is 10%. Calculate the NPV of developing this bike, assuming all cash flows occur at the end of the year.
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