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a)what is the present worth for the VR gaming investment? B)what is the present worth for the online class platform? c)whats the best option for
a)what is the present worth for the VR gaming investment? B)what is the present worth for the online class platform? c)whats the best option for john? John, an entrepreneur with a knack for identifying unique business opportunities, has narrowed down his next potential venture to two options: opening a virtual reality (VR) gaming arcade or launching a subscription-based online class platform. Both opportunities are expected to bring in equal annual cashflows and have the same exit value at the end of the investment period. In the realm of VR Gaming. there's an initial investment of $500,000. Over the course of 6 years, there's an expected annual cash flow of $60,000. By the end of Year 6 , the salvage value is estimated to be $300,000. On the other hand, the Online Class Platform requires the same initial investment of $500,000. However, it generates an annual subscription revenue of $70,000 for 6 years. The salvage value for this venture at the conclusion of Year 6 is projected to be $100,000. Assume that these alternatives are mutually exclusive. To decide which venture to pursue, John considers the financial details of each alternative. Assume that John has a MARR of 8%
a)what is the present worth for the VR gaming investment?
B)what is the present worth for the online class platform?
c)whats the best option for john?
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