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 $70 million per year for three years (starting next year [i.e., at t = 1]). If it fails, you will only have net cash flows of $30 million per year for two years (also starting next year). There is an equal chance that it will be a hit or failure (probability = 50 percent). You will not know whether it is a hit or a failure until after the first year's cash flows are in (i.e., at t = 1). You must spend $130 million immediately for equipment and the rights to produce the figure. If the discount rate is 10 percent, calculate Nia's NPV.\ \ Multiple Choice\ \ $12.93\ \ \ $22.20\ \ \ $16.93\ \ \ $21.77