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Your marketing department has come up with two potential electric bikes which you believe will only have a large enough demand to maintain market for

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Your marketing department has come up with two potential electric bikes which you believe will only have a large enough demand to maintain market for five years. You believe that the adoption of one of those two products will not affect the viability of the other product. (The projects are independent) You estimate that Bike 1 will cost $53,395 up front to set up, whereas Bike 2 will cost $60,153 up front. The expected cash flows from those two bike designs over the life of the products can be found in the table below. Both projects have similar risks to current projects at Bikes for All, therefore the appropriate discount rate for both projects should be our current WACC of 10.58%. Calculate the net present value of both projects, and enter in the box below how much the value of the firm is expected to increase based on this capital budget (please enter the amount to the nearest penny)

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