2 Games Inc. has developed a new electronic game and compiled the following product inform Year...
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2 Games Inc. has developed a new electronic game and compiled the following product inform Year 1 2 3 4 5 Production Costs Promotion Costs $0.00 $48,000.00 $48,000.00 $48,000.00 $48,000.00 $48,000.00 $64,000.00 $96,000.00 $32,000.00 $0.00 Company requires a return of 16% on investments Sales Revenue $0.00 $64,000.00 $2,56,000.00 $1,28,000.00 $32,000.00 Calculate the NPV of the project. (8 Marks) Calculate the ROI of the project. (2 Marks) Determine the payback period of the project.(2 Marks) Which you go ahead with the project? Why/why not? (3 Marks) L 2 Games Inc. has developed a new electronic game and compiled the following product inform Year 1 2 3 4 5 Production Costs Promotion Costs $0.00 $48,000.00 $48,000.00 $48,000.00 $48,000.00 $48,000.00 $64,000.00 $96,000.00 $32,000.00 $0.00 Company requires a return of 16% on investments Sales Revenue $0.00 $64,000.00 $2,56,000.00 $1,28,000.00 $32,000.00 Calculate the NPV of the project. (8 Marks) Calculate the ROI of the project. (2 Marks) Determine the payback period of the project.(2 Marks) Which you go ahead with the project? Why/why not? (3 Marks) L
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To calculate the Net Present Value NPV of the project we need to discount the cash flows to their pr... View the full answer
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
Posted Date:
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