A New App Development Team from the Global MBA Program atUniversidad Rey Juan Carlos of Spain is working on an apparel shoppingtool that can scan your body using your cell phone and find the best fittingclothes for you, which are then modeled by your own dynamic image rightthere on the screen. Being high-tech, the term is limited to one year, asinnovations will be necessary to keep it from being copied or renderedobsolete. EBITDA for the end of year one is expected to be $50,000,000,while developing costs and investments amount to $ 10,000,000. The IRRapplicable to IT projects is 57%, as indicated by S&P's sector ROI today.Which of the following is the correct NPV of their project if conceived forone year only? Limit to 2 decimalsO $31,847,133.75O None of the above is correctO $10,284,798.57O $21,847,133.75

The NPV is supposed to be positive when the cash inflows are greater, The NPV considers the time…

Answered: A New App Development Team from the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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