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These must be answered using the NPV and IRR Functions in Excel, not hand calculated. Please show =NPV() and =IRR() function valves for calculations.

	FastTrack Bikes, Inc., is thinking of developing a new composite road bike. Development will take six years and the cost is $200,000 per year. Once in production, the bike is expected to make $300,000 per year for 10 years. Assume the cost of capital is 10%.
	a.	Calculate the NPV of this investment opportunity, assuming all cash flows occur at the end of each year. Should the company make the investment?
	b.	By how much must the cost of capital estimate increase to change the decision?
	c.	What is the NPV of the investment if the cost of capital is 14%? Should the company make the investment?
		Cost of capital	10%	14%
		Year 0	$0
		Year 1	-$200,000
		Year 2	-$200,000
		Year 3	-$200,000
		Year 4	-$200,000
		Year 5	-$200,000
		Year 6	-$200,000
		Year 7	$300,000
		Year 8	$300,000
		Year 9	$300,000
		Year 10	$300,000
		Year 11	$300,000
		Year 12	$300,000
		Year 13	$300,000
		Year 14	$300,000
		Year 15	$300,000
		Year 16	$300,000
	a.	Calculate the NPV of this investment opportunity, assuming all cash flows occur at the end of each year. Should the company make the investment?
		NPV:
		Should they invest?
	b.	By how much must the cost of capital estimate increase to change the decision?
		IRR:
		Cost of capital increase:
	c.	What is the NPV of the investment if the cost of capital is 14%? Should the company make the investment?
		Cost of capital:	14%
		NPV:
		Should they invest?
Requirements
	1.	To calculate the net present value of the stream of cash flows, you will use the function NPV. In cell D30, by using the function NPV and cell references, calculate the net present value of the stream of cash flows (1 pt.).
	2.	To decide whether the company should invest in this project, you will apply the NPV rule. In cell D31, type either Yes or No (1 pt.).
	3.	To calculate the internal rate of return of the investment, you will use the function IRR. In cell D35, by using the function IRR and cell references, calculate the internal rate of return of the investment (1 pt.).
	4.	In cell D36, by using cell references, calculate the minimum increase in the cost of capital which would make the investment unacceptable (1 pt.).
	5.	To calculate the net present value of the stream of cash flows, you will use the function NPV. In cell D42, by using the function NPV and cell references, calculate the net present value of the stream of cash flows (1 pt.).
	6.	To decide whether the company should invest in this project, you will apply the NPV rule. In cell D43, type either Yes or No (1 pt.).

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