Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,655,000. Expected cash flows over the next four years are $832,000, $984,000, $1.140.000, and $1,496,000. Given the company's required rate of return of 15.5 percent, what is the NPV of this project? (Do not round intermediate computations. Round final answer to nearest dollar.) O $2,919,806 O $1,383,467 O $3,122,607 O $4,669,542

Principles of Accounting Volume 2
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ISBN:9781947172609
Author:OpenStax
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
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Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing
equipment is $1,655,000. Expected cash flows over the next four years are $832,000, $984,000, $1.140.000, and $1,496,000.
Given the company's required rate of return of 15.5 percent, what is the NPV of this project? (Do not round intermediate
computations. Round final answer to nearest dollar.)
O $2,919,806
O $1,383,467
O $3,122,607
O $4,669,542
Transcribed Image Text:Johnson Entertainment Systems is setting up to manufacture a new line of video game consoles. The cost of the manufacturing equipment is $1,655,000. Expected cash flows over the next four years are $832,000, $984,000, $1.140.000, and $1,496,000. Given the company's required rate of return of 15.5 percent, what is the NPV of this project? (Do not round intermediate computations. Round final answer to nearest dollar.) O $2,919,806 O $1,383,467 O $3,122,607 O $4,669,542
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