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Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or

Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as a PC game, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate for both projects is 10 percent.

Year Board game PC
0 -$850 -$2000
1 620 1400
2 550 1050
3 140 450

a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

d. What is the incremental IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

A. Board game payback ________ years

PC game payback _________ years

b. Board game NPV ________

PC game NPV ___________

c. Board game IRR _________%

PC game IRR__________%

d. Incremental IRR __________%

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