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 is released, 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 is 9%?

Question 21 options:

1)

$991,220

2)	$1,071,432

3)	$1,564,559

4)	$1,841,093