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Huish Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or
Huish 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 smartphone app, but not both. Consider the following cash flows of the two mutually exclusive projects for Huish Brothers. Assume the discount rate for Huish Brothers is 10 percent: Year Board GameApp 0 -$ 620-$1,790 1 900 1,200 2. 160 1,100 3 60 490 Calculate the IRRs for the a) boardgame and b) the app. a) a) 71.5%; b) 23.6% b) a) 86.8%; b) 33.6% Oc) a) 80.3%; b) 32.0% Od) a) 64.4%; b) 30.3%
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