Question: Question 24 1 pts Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment
Question 24 1 pts Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $2,000,000. Expected cash flows over the next four years are $525,000 $750,000, 800,000 and $200,000. Given the company's required rate of return of 13 percent, should Johnson systems accept this project? Why? (Do not round intermediate computations. Round final answer to nearest dollar) Yes, the project should be accepted because the NPV is $229,066 Yes, the project should be accepted because the NPV is $270,934 none of these are correct no, the project should be rejected because the NPV is $229,066 No, the project should be rejected because the NPV is -$270,934
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