Otobai is considering still another production method for its electric scooter. It would require an investment of 16.00 billion in addition to the initial investment of 16.00 billion but would reduce variable costs by 60,000 per unit. The cost of capital was assumed to be 17%. The total investment can be depreciated on a straight-line basis over the 10-year period, and profits are taxed at a rate of 50%.

Consider the following estimates for the scooter project"

Market size			1.20	million
Market share			.1
Unit price