A Manufacturer of Video Games Develops a New Game Over

question 24

Multiple Choice

A manufacturer of video games develops a new game over two years. This costs $830,000 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 $1.20 million per year for three years after that. What is the net present value (NPV) of this decision if the cost of capital is 10%?

• A) $950,349
• B) $1,045,384
• C) $1,520,559
• D) $1,805,663

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Definitions:

Ethical Life

A way of living that is in accordance with moral principles and values, striving for a good and virtuous existence.

Primary Virtues

Fundamental qualities valued as good and desirable in a person, such as honesty and courage.

Plato

An ancient Greek philosopher who was a student of Socrates and teacher of Aristotle, known for his contributions to the foundation of Western philosophy.

Contemporary Virtue Theory

A modern philosophical movement that emphasizes virtues or moral character in determining ethical behavior.