PLEASE ANSWER ALL PARTS $($the last person didn't answer some parts at all and left others incorrect. thank you for your time!$)$

FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take $6$ years and the cost is $$206,100$

per year. Once in production, the bike is expected to make $$289,500$ per year for $10$ years. The cash inflows begin at the end of year

Assume the cost of capital is $10\mathrm{.}6\%$ for parts $($a$),($b$),$ and $($c$)$ below.

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$.$ With costs remaining at $$206,100$ per year, how long must development last to change the decision?

Assume the cost of capital is $14\mathrm{.}5\%$ for parts $($d$),($e$),$ and $($f$)$ below.

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?

f$.$ With costs remaining at $$206,100$ per year, how long must development last to change the decision?

a$.$ Calculate the NPV of this investment opportunity.

If the cost of capital is $10\mathrm{.}6\%,$ the NPV is $$65264\mathrm{.}72.($Round to the nearest dollar.$)$

Should the company make this investment? $($Select the best choice below.$)$

A$.$ Reject the investment because the NPV is equal to or greater than zero $($$$0).$

B$.$ Accept the investment because the NPV is equal to or greater than zero $($ $$0).$

C$.$ Reject the investment because the NPV is less than zero $($$$0).$

D$.$ Accept the investment because the NPV is equal to or 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 decision

unchanged.

The IRR is

$\%.($Round to two decimal places.$)$

If the cost of capital is $10\mathrm{.}6\%,$ the maximum deviation is

$\%.($Round to two decimal places.$)$

Part $1$

FastTrack$$ Bikes, Inc. is thinking of developing a new composite road bike. Development will take $6$ years and the cost is $ $206$ comma $100$ per year. Once in$$ production, the bike is expected to make $$$$289$ comma $500$ per year for $10$ years. The cash inflows begin at the end of year $7.$

Assume the cost of capital is $10\mathrm{.}6\%$ for parts $($a$),($b$),$ and $($c$)$ below.

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$.$ With costs remaining at $ $206$ comma $100$ per$$ year, how long must development last to change the$$ decision?

Assume the cost of capital is $14\mathrm{.}5\%$ for parts $($d$),($e$),$ and $($f$)$ below.

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?

f$.$ With costs remaining at $ $206$ comma $100$ per$$ year, how long must development last to change the$$ decision? a$.$ Calculate the NPV of this investment opportunity.

If the cost of capital is $10\mathrm{.}6\%,$ the NPV is $$1.($Round to the nearest dollar.$)$