This Question: 1 pt
28 of 28 (2 complete)
This Test: 28 pts possible
A manufacturer of video games develops a new game over two years. This costs $800,000 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
$1.40 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. $2,067,883
B. $2,415,059
C. $1,509,412
D. $1,660,363