What is the net present value of this decision

Assignment Help Financial Management

Reference no: EM132040465

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 $ 1.50 million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is 8%?

Reference no: EM132040465

Questions Cloud

How to conduct performance evaluations : Now that the position has been created, you've taken the opportunity to create a PowerPoint presentation to train new supervisors on how to conduct performance.

Identify fielded data that is relevant to each study : Identify fielded data that is relevant to each study. Indicate purpose of the fielded data to the study.

Determine the changes to each of the accounts : Determine the changes to each of the following accounts in the Balance Sheet:

How the hospital can increase their cultural strategic think : How the hospital can increase their cultural strategic thinking to ensure patients are addressed with care and compassion regardless of their individual culture

What is the net present value of this decision : What is the net present value (NPV) of this decision if the cost of capital is 8%?

What is rita home office deduction for the current year : Rita owns a sole proprietorship in which she works as a management consultant. What is Rita's home office deduction for the current year

How are they different from the music of the romantic period : How are they different from the music of the Romantic period? How do they reflect the influence of non-musical artistic disciplines ?

Finding out the identity of people : What are the advantages and disadvantages of finding out the identity of these people.

Market to book ratio-growth and market capitalization : Financial norms for the engery sector such as mean/median PE, stock return, market to book ratio, growth, market capitalization,

User Account

All Pages