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a. What is the payback period for each project? b. What is the NPV for each project? c. What is the IRR for each project?

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a.

What is the payback period for each project?

b. What is the NPV for each project?
c. What is the IRR for each project?
d. What is the incremental IRR?

A.

Board Game____ Years

DVD____ Years

B.

Board Game____

DVD____

C.

Board Game____ %

DVD____ %

D. Incremental IRR____%

Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 11 percent

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