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Fast Track Bikes Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year.

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Fast Track Bikes Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in production, the bike is expected to make $300,000 per year for 10 years. Assume the cost of capital is 10%. a. Calculate the NPV of this investment opportunity, assuming all cash flo %. of each year. Should the company make the investment? Excel to calculate the IRR.) -b. By how much must the cost of capital estimate deviate to change the decision? (Hint: Use

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