FastTrack? Bikes, Inc. is thinking of developing a new compositeroad bike. Development will take six

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FastTrack​ Bikes, Inc. is thinking of developing a new compositeroad bike. Development will take six years and the cost is $ 206comma 200$206,200 per year. Once in​ production, the bike isexpected to make $ 290 comma 604$290,604 per year for 1010 years.The cash inflows begin at the end of year 7.For parts​ a-c, assumethe cost of capital is 9.6 %9.6%. a. Calculate the NPV of this investment opportunity. Should thecompany make the​ investment? b. Calculate the IRR and use it to determine the maximumdeviation allowable in the cost of capital estimate to leave thedecision unchanged. c. How long must development last to change the​ decision? Forparts​ d-f, assume the cost of capital is 14.6 %. d. Calculate the NPV of this investment opportunity. Should thecompany make the​ investment? e. How much must this cost of capitalestimate deviate to change the​ decision? f. How long mustdevelopment last to change the​ decision? . . .

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