FastTrack Bikes, Inc. is thinking of developing a new composite road bike Development will take six years and the cost is $198,400 per year. Once in production, the bike is expected to make S291,441 per year for 10 years The cash inflows begin at the end of year 7 For parts a-c assume the cost of capital is 103%. 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 must development last to change the decision? For parts d-1 assume the cost of captalis 13.2% 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? If the cost of capital is 10 3%, the NPV is (Round to the nearest dolar) Shoukd the company make this investment? (Select the best choice below) A. Accept the investment because the NPV is equal to or less than zero ($0) O B. Accept the investment because the NPV is equal to or greater than zero (S0) O C. Reject the investment because the NPV is equal to or greater than zero ($0) O D. Reject the investment because the NPV is less than zero ($0) b. Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the The IRR is 1% (Round to two decimal places) Click to select your answerts) Type here to search ESC F3 2 3 4 5 Tab apsLk