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 ¥16.7 billion. The cost of capital is 12%. 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 1.27 Million
Market Share .1
Unit Price ¥570,000
Unit Variable Cost ¥530,000
Fixed Cost ¥2.17 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.)
NPV = ¥ ________ billion