Games Inc. has developed a new electronic game and compiled the following production information.

Production Cost Promotion Cost Sales Revenue

Year 1 $32,000 - -

Year 2 32,000 $64,000 $ 64,000

Year 3 32,000 96,000 256,000

Year 4 32,000 32,000 128,000

Year 5 32,000 32,000

Should the product be marketed if the company requires a return of 16%? (10 marks)

You MUST use the TI BA II calculator features (N, I/Y, PV, PMT, FV, AMORT) to solve questions whenever possible.