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2. GAME is developing a new skin for its most popular game. It believes it will generate additional cash flows beginning in 2022 of $50,000,

2. GAME is developing a new skin for its most popular game. It believes it will generate additional cash flows beginning in 2022 of $50,000, growing 50% in 2023, 40% in 2024 and 30% in 2025. GAME estimates that it spend $200,000 in 2021 to develop the skin, graphics, etc. GAME's cost of capital is 20%. a. Calculate the Net Present Value of this decision. (7 pts) $ 20,341 b. Calculate the IRR of this decision. (3 pts) 24.0% c. Calculate the Compounded Annual Growth Rate of this decision. (4 pts) 39.8% d. Should GAME purchase the machine? Why or why not? (4 pts) 1 2 Qualitative 3

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