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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
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 smartphone app, 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 12 percent: Year Board Game -$ 570 850 1 2 3 App -$1,740 1,250 1,050 440 210 200 Calculate the payback period. (Do not round intermediate calculation. Round the answers to 2 decimal places.) Board Game App Payback period years years Calculate the NPV. (Do not round intermediate calculation. Round the answers to 2 decimal places. Omit $ sign in your response.) Board Game App NPV $ $ Calculate the IRR. (Do not round intermediate calculation. Round the answers to 2 decimal places.) IRR Board Game % App % Calculate the incremental IRR. (Do not round intermediate calculation. Round the answer to 2 decimal places.) Incremental IRR %
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