Calculation of npv and irr of project

Reference no: EM1313432

Calculation of NPV and IRR of project

The Fast Track Bikes, Inc., will take six years and the cost is $200,000 per year. Once produce the product is expect to make $300,000 per year for 10 years. The cost of capital is 10%

a. Calculate the NPV

b. Calculate IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

Reference no: EM1313432

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