A manufacturer of video games develops a new game over two years. This costs

$ 800 comma 000$800,000

per year with one payment made immediately and the other at the end of two years. When the game is released, it is expected to make

$ 1.50$1.50

million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is

88%?

A.

$ 1 comma 828 comma 297$1,828,297

B.

$ 3 comma 473 comma 764$3,473,764

C.

$ 2 comma 925 comma 275$2,925,275

D.

$ 2 comma 011 comma 127