M.V.P. Games, Inc., has hired you to perform a feasibility study of a new video game that requires an initial investment of $5,676,800. The company expects a total annual operating cash flow of $1.22 million for the next 9 years. The relevant discount rate is 10 percent. Cash flows occur at year-end. After one year, the estimate of remaining annual cash flows will be revised either upward to $2.12 million with a probability of 30% or downward to $277,000 with a probability of 70%. At that time, the video game project can be sold for $2.52 million. Should the firm abandon the project after one year? What is the revised NPV?

		Yes. 995,474.34
		Yes. 3,136,864.07
		No.1,477,774.56
		No. 626,009.06