What is the NPV of the electric scooter project

Assignment Help Financial Management

Reference no: EM131583753

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 ¥17 billion. The cost of capital is 10%. 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 1.3 million Market share .1 Unit price ¥ 600,000 Unit variable cost ¥ 560,000 Fixed cost ¥ 2.2 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.) Net present value ¥ _________ billion

Reference no: EM131583753

Questions Cloud

Create value for a company : In your own words, How does diversification and acquisition create value for a company and how can each destroy value for a company?

What are the risks of allowing others to be autonomous : What are the risks of allowing others to be autonomous? What are the benefits?

Explain on any factors related to organizational culture : Explain on factor related to organizational culture and innovation within Mattel's setting that might have influence company to move in more positive direction.

Identify three different levels of management : Identify three different levels of management within the organization with line authority and differentiate generally between their primary roles.

What is the NPV of the electric scooter project : Otobai Company in Osaka, Japan is considering introduction of electrically powered motor scooter for city use. What is the NPV of the electric scooter project?

Show the number of students whose zip is given : List all students (display student_id, first name, last name, and employer) who live in Columbus, OH.

What is a work breakdown structure : What is a work breakdown structure (WBS)? What purpose does it serve in project time management? How might you use a WBS in your personal or professional life?

What is the profit margin : The Sugar Shack reports net income of $150,000, sales of $1,500,000, and average assets of $730,000. What is the profit margin

Discuss business level strategies : Analyze the five business-level strategies discussed to determine which strategy the company you researched most likely applies

User Account

All Pages