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A manufacturer of video games develops a new game over two years. This costs $850,000 per year with one payment made immediately and the other
A manufacturer of video games develops a new game over two years. This costs $850,000 per year with one payment made immediately and the other at the end of two years. When the game isreleased, it is expected to make$1.2 million per year for three years after that. What is the net present value(NPV) of this decision if the cost of capital is9%?
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