Question
Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game or as
Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game or as an interactive CD-ROM, 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 8 percent.
Year Board Game CD-ROM
0 -$1,000 -$2,300
1 650 1,550
2 700 1,350
3 170 600
What is the incremental IRR?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
Incremental IRR______%
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