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Description: It is still at the concept stage mind you. But the Gotoo is an intriguing concept vehicle – kind of a small bus designed to replace regular cars and trucks inside metropolitan areas. The concept offers a reduction in traffic problems by being a shared vehicle. The designers envision a customized interior that adapts by presenting each user with their favourite interior colour.

Source: Globeandmail.com

Date: February 21, 2016

Link: http://www.theglobeandmail.com/globe-drive/culture/technology/small-customizable-subway-car-designed-to-replace-cars-in-cities/article28768928/

Discussion Points:

1) What do you think of the potential of the Gotoo? Can you seeing this project getting off of the ground?

2) If you were the CFO of a maker of subway cars or buses, what type of advice would you provide to a CEO and a board who were expressing interest in researching this concept?

3) What are the accounting rules around research and development? When could you capitalize these costs?

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