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A manufacturer of video games develops a new game over two years. This costs $830,000 per year with one payment made immediately and the other
A manufacturer of video games develops a new game over two years. This costs $830,000 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 1.3 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%?
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