Considering the introduction of an electrically powered

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Reference no: EM131222863

Otobai Company in Osaka, Japan is considering the introduction of an electrically powered motor scooter for city use. The scooter project requires an initial investment of ¥16.7 billion. The cost of capital is 12%. The initial investment can be depreciated on a straight-line basis over the 10-year life of the project. Profits are taxed at a rate of 50%

Consider the following project estimates

Market Size 1.27 Million

Market Share .1

Unit Price ¥570,000

Unit Variable Cost ¥530,000

Fixed Cost ¥2.17 billion

What is the NPV of the electric scooter project? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in billions rounded to 3 decimal places.)

NPV = ¥ ________ billion

Reference no: EM131222863

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