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A manufacturer of video games develops a new game over two years. This costs $1,000,000 per year with one payment made immediately and the other
A manufacturer of video games develops a new game over two years. This costs $1,000,000 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 $1.10 million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is 9%? Select one: A. $613,320 B. $892,102 C. $1,059,371 D. $501,914
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