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You are planning to produce a new action figure called However, you are very uncertain about the demand for the productit is a hit, you

You are planning to produce a new action figure called However, you are very uncertain about the demand for the productit is a hit, you will have net cash flows of $64 million per year for three years (starting next year at t =13 If it failsyou will only have net cash flows of 24 million per year for two years also starting next yearThere is an equal chance that it will be a hit or failure ( robability=50 percen You will not know whether it is hit or a failure until after the first year's cash flows are in ( t = n You must spend 115 million immediately for equipment and the rights to produce the figureIf the discount rate is 10 percent, calculate NPV

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