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. Show all steps.

a. Based on the payback period rule, which project should be chosen?

b. Based on NPV, which project should be chosen?

c. Based on the IRR, which project should be chosen?

d. Based on the incremental IRR, which project should be chosen?

Board Game 950 3 0 Cum. C 2100 600 450 Year Cum. CF 950 250 300 430 DVD 2100 1500 1050 450 5