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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 an interactive DVD, 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 DVD

0 $ 1,600 $ 3,500

1 770 2,150

2 1,350 1,650

3 290 1,200

What is the incremental IRR?

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