FastTrack Bikes Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $191,000 per year Once in production, the bike is expected to make $286,500 per year for 10 years. Assume the cost of capital is 10% 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 (Hint: Use Excel to calculate the IRR.) c. Calculate the NPV of this investment opportunity assuming the cost of capital is 14%. Should the company make the investment given this new assumption? Note: Assume that all cash flows occur at the end of the appropriate year and that the the inflows do not start until year 7. Calculate the NPV of this investment opportunity. Should the company make the Investment? The present value of the cost is $ Round to the nearest dollar) The present value of the benefits in (Round to the nearest dolor.) The not present value is (Round to the nearest dollar) (Select from the drop down menus) You should the investment because the NPV b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to have the decision unchanged. (Hint: Use Excol to oculate the IRR) The IRR IS (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate to leave the decision unchanged (Round to two decimal places) c. What is the NPV of the investment if the cost of capital is 14px? Should the company make the investment given this new assumption? The present value of the contains (Round to the nearest dollar) The present value of the benefits is (Round to the nearest dolor (Round to the nearest dollar) The NPV will be $ Select from the drop-down menus)