Ques 50: Bailey Company is considering developing a new iPhone app. The cost of development is expected to be $750,000 (all incurred in time zero) and management expects net cash flows from sale of the app to be $100,000 in year one and $150,000, $225,000, $250,000, $280,000 and $300,000 in years two through six, respectively. What is the Net Present Value of this project if the discount rate is 12%?
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