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JamBanz is looking to launch a next edition of its hit video game, RockTour 6 . RockTour 6 will cost $7 million to develop and

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JamBanz is looking to launch a next edition of its hit video game, RockTour 6 . RockTour 6 will cost $7 million to develop and produce new cash flows of $5 million for the next three years. The release of RockTour 6 is also expected to cannibalize sales of the prior version of the game, RockTour 5 . JamBanz expects cash flows for RockTour 5 to decline by $2.0milli. for the next two years. If JamBanz's cost of capital is 14.2%, should it go ahead with the launch of RockTour 6 ? Yes, creates $6.00mil Yes, creates $4.57mil Yes creates $1.28mil No, destroys $2.57mil

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