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rsbains rsbains
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3 years ago
A manufacturer of video games develops a new game over two years. This costs $850,000 per year with one payment made immediately and the other at the end of two years. When the game is released, it is expected to make $1.2 million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is 9%?

▸ $1,071,432

▸ $1,564,559

▸ $991,220

▸ $1,841,093
Textbook 
Fundamentals of Corporate Finance

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
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JaxJax
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3 years ago
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