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FastTrack Bikes, Inc. is thinking of producing a new composite road bike. The company has to make an investment in new production facilities of $550,000.

FastTrack Bikes, Inc. is thinking of producing a new composite road bike. The company has to make an investment in new production facilities of $550,000. The cost of capital for FastTrack Bikes is 12%. The expected free cash flow over the next 6 years is estimated to be: Year 1: $55,000 Year 2: $155,000 Year 3: $350,000; Year 4: $300,000; Year 5: $120,000; Year 6: $40,000 Compute the NPV (net present value) for this investment.

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