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Hi, anybody can help to answer this question? tax rate is 30%. (b) The Tencent games has a new video game production project available to
Hi, anybody can help to answer this question? tax rate is 30%.
(b) The Tencent games has a new video game production project available to it at a cost of $6,000,000. If the project is accepted, the company will be able to sell 13,000 games at $172 in net cash flow for each of the next five years. The company's discount rate is 15%. What is the NPV of the investment? The executives of the Tencent games are concerned about the potential of future competition and a subsequent drop in sales and price. If after two years you can dispose of the asset for $1,000,000 at what price would it make sense to abandon the project Step by Step Solution
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