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A manufacturer of video games develops a new game over two years. This costs $840,000 per year with one payment made immediately and the other
A manufacturer of video games develops a new game over two years. This costs $840,000 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 $1.00 million per year for three yeara after that. What is the net present value (NPV) of this decision if the cost of capital is 10%?
$573,138
$833,655
$521,035
$989,966
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