GAME is developing a new skin for its most popular game. It believes it will generate additional cash flows beginning in 2022 of $50,000, growing 50% in 2023, 40% in 2024 and 30% in 2025.GAME estimates that itspend $200,000 in 2021 to develop the skin, graphics, etc.GAME's cost of capital is 20%.

Calculate the Net Present Value of this decision

Answer rating: 100% (QA)

To calculate the net present value NPV of the decision to develop the new skin we need to find the p... View the full answer