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%?
A)$1 564 559
B)$1 071 432
C)$991 220
D)$1 841 093

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The Answer of 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%?
A)$1 564 559
B)$1 071 432
C)$991 220
D)$1 841 093

A Manufacturer of Video Games Develops a New Game Over