FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $$204,800$ per year. Once in production, the bike is expected to make $$299,438$ per year for $10$ years. The cash inflows begin at the end of year $7.$

For parts a$-$c$,$ assume the cost of capital is $10\mathrm{.}4\%.$

a$.$ Calculate the NPV of this investment opportunity. Should the company make the investment?

b$.$ Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

c$.$ How tong must development last to change the decision?

For parts $d-f,$ assume the cost of capital is $13\mathrm{.}1\%.$

d$.$ Calculate the NPV of this investment opportunity. Should the company make the investment?

e$.$ How much must this cost of capital estimate deviate to change the decision?

f$.$ How long must development last to change the decision?

a$.$ Calculate the NPV of this investment opportunity.

If the cost of capital is $10\mathrm{.}4\%,$ the NPV is $$.($Round to the nearest dollar.$)$