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You are planning to produce a new action figure called Nia. However, you are very uncertain about the demand for the product. If it is

You are planning to produce a new action figure called "Nia". However, you are very uncertain about the demand for the product. If it is a hit, you will have net cash flows of $86 million per year for three years. If it fails, you will only have net cash flows of $46 million per year for two years. There is an equal chance that it will be a hit or failure. You will not know whether it is a hit or a failure until after the first year's cash flows are in. You must spend $170 million immediately for equipment and the rights to produce the figure. If the discount rate is 10 percent, calculate Nia's NPV.
C)-$28.40
D) $19.15
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