fast track bikes Inc. is thinking of developing a new composite road bike. Development or take six years and the cost is 212,300 per year. Once in production the bike is it expected to make 209,792 per year for 10 years. Cash flow's begin at the end of the seventh year. For part a and C assume the cost of capital is 10.1%.

A) calculate the NPV of this investment opportunity. Should the company make the investment?

B) calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

C) how long was the development last to change the decision?

for parts D through F assume the cost of capital is 13.7%.

D) calculate the NPV of this investment opportunity. Should the company make the investment?

E) how much must this cost of capital estimate deviate to change the decision?

F) how long must've development last to change the decision?