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2) Games Inc. has developed a new electronic game and compiled the following product information. Year Production Cost Promotion Cost Sales Revenue 1 $48,000 Nil
2) Games Inc. has developed a new electronic game and compiled the following product information. Year Production Cost Promotion Cost Sales Revenue 1 $48,000 Nil Nil 2 $48,000 $64,000 $64,000 3 $48,000 $96,000 $256,000 4 $48,000 $32,000 $128,000 5 $48,000 Nil $32,000 If the company requires a return of 16% on investments a) Calculate the NPV of the project. (8 Marks) b) Calculate the ROI of the project. (2 Marks) c) Determine the payback period of the project.(2 Marks) d) Which you go ahead with the project? Why/why not
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