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Attached are two questions needing assistance. Please provide work in excel so that I can grasp this concept Problem 14 Year Board Game DVD 0
Attached are two questions needing assistance. Please provide work in excel so that I can grasp this concept
Problem 14 Year Board Game DVD 0 -950 -2,100 1 700 1,500 2 550 1,050 3 130 450 Problem 15 Year CDMA 0 1 2 3 G4 -16 22 15 5 Wi-FI -24 20 50 40 -40 36 64 40 Show work in excel Chapter 5 Problem 14 - Comparing Investment Criteria 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 for both projects is 10 percent. a. b. c. d. Based on the payback period rule, which project should be chosen? Based on the NPV, which project should be chosen? Based on the IRR, which project should be chosen? Based on the incremental IRR, which project should be chosen? Problem 15 - Profitability Index versus NPV Hanmi Group, a consumer electronics conglomerate, is reviewing its annual budget in wireless technology. It is considering investments in three different technologies to develop wireless communication devices. Consider the following cash flows of the three independent projects available to the company. Assume the discount rate for all projects is 10 percent. Further, the company has only $40 million to invest in new projects this year. a. Based on the profitability index decision rule, rank these investments. b. Based on the NPV, rank these investments. c. Based on your findings in (a) and (b), what would you recommend to the CEO of the company and whyStep by Step Solution
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