FIN – Otobai Company in Osaka, Japan
Otobai Firm in Osaka, Japan is contemplating the introduction of an electrically powered motor scooter for metropolis use. The scooter undertaking requires an preliminary funding of ¥15 billion. The price of capital was assumed to be 10%. The preliminary funding could be depreciated on a straight-line foundation over the 10-year interval, and earnings are taxed at a fee of 50%.Contemplate the next estimates for the scooter undertaking.Market Measurement 1.1 millionMarket Share zero.1Unit Value ¥ 400,000.0Unit Variable Value ¥ 360,000.0Fixed Value ¥ 2.zero billionWhat is the NPV of the electrical scooter undertaking? (Damaging quantity must be indicated by a minus signal. Enter your reply in billions. Don't spherical intermediate calculations. Spherical your reply to 2 decimal locations.)Internet current worth ¥ ______________ billion