Question: Please show steps in excel for practice Check my work 5 First Person Games, Inc., has hired you to perform a feasibility study of a
Please show steps in excel for practice
Check my work 5 First Person Games, Inc., has hired you to perform a feasibility study of a new video game that requires an initial investment of $6.8 million. The company expects a total annual operating cash flow of $1.28 million for the next 9 years. The relevant discount rate is 10 percent. Cash flows occur at year-end. 2 points a. What is the NPV of the new video game? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.) eBook NPV Pintb. After one year, the estimate of remaining annual cash flows will either be revised upward to $2.18 million or revised downward to References$283,000. Each revision has an equal probability of occurring. At that time, the video game project can be sold for $2.58 million. What is the revised NPV given that the firm can abandon the project after one year? (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89. NPV $
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