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Matrix.com has designed a virtual-reality program that is indistinguishable from real life to those experiencing it. The program will cost $20 million to develop (paid
Matrix.com has designed a virtual-reality program that is indistinguishable from real life to those experiencing it. The program will cost $20 million to develop (paid up front), but the payoff is substantial: $1 million at the end of year 1, $2 million at the end of year 2, $5 million at the end of year 3, and $6 million at the end of each year thereafter, through year 10. Matrix.coms weighted average cost of capital is 15 percent. Given these conditions, what are the NPV, IRR, and MIRR of the proposed program?
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