In: Finance
FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is
$223,000 per year. Once in production, the bike is expected to make $ 356,800 per year for 10 years. Assume the cost of capital is 10%
Please calculate the following:
A) The present value of the costs is (Round to the nearest
dollar.)
B) The present value of the benefits is (Round to the nearest dollar.)