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A manufacturer of video games develops a new game over two years. This costs $800,000 per year with one payment made immediately and the other
A manufacturer of video games develops a new game over two years. This costs $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 $1.20 million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is 10% ? A. $1,105,657 B. $1,909,771 C. $1,005,142 D. $1,608,228
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