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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
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 8 percent. Year Board Game PC 0 -$1,500 -$3,300 1 750 2,050 2 1,250 1,630 3 270 1,100 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 PC game payback b. Board game NPV PC game NPV c. Board game IRR PC game IRR d. Incremental IRR years years % % %
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