Italy Bikes Company manufactures high$-$performance bikes. The company plans to improve its

profits by increasing sales and its market share. They are therefore analysing a project to enter

a bike racing team, for a period of four years. If the financial evaluation indicates that project is

worthwhile, the project will start immediately. The first year of the project will focus on

developing and testing the racing bikes, so they do not expect to generate additional sales from

the project during its first year.

The Accounting department has produced the following forecast of cash flows for the project.

Projected Revenue and Costs for the project $($$$)$