finance

Problem 1: out of 6) Mario 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 Mario Brothers. Assume the discount rate for Mario Brothers is 9 percent. Year DVD Board Game - 700 700 430 -1800 1,400 1.100 1. What is the discounted payback period for each project? What do you conclude? 2. What is the NPV for each project? What do you conclude? 3. Calculate the profitability index for each of the projects? Is the Profitability index reliable in this situation? Explain. 4 Calculate the crossover rate. What do you conclude