SHOW ALL WORK. NO FINANCIAL CALCULATOR OR EXCEL. SHOW ALL CALCULATIONS. 6. Your company...

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SHOW ALL WORK. NO FINANCIAL CALCULATOR OR EXCEL. SHOW ALL CALCULATIONS.image

6. Your company is considering the development of an electric bicycle. The development will take four years and cost $100,000 per year. Once developed, the company expects to generate a positive cash flow of $150,000 per year for ten years. The cost of capital is 10%; assume all cash flows occur at the end of each year. What is the Net Present Value of the electric bicycle? Should the company invest in this product? Why? Briefly explain your

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