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 10 percent:

Year	Board Game		CD-ROM
0	$	600	$	1,900
1		700		1,400
2		150		900
3		100		400

a-1.

Which project should be chosen according to the payback period?

	Board Game
	CD-ROM

a-2.	Calculate the payback period. (Do not round intermediate calculation. Round the answers to 2 decimal places.)

	Payback period
Board Game	years
CD-ROM	years

b-1.	Calculate the NPV. (Do not round intermediate calculation. Round the answers to 2 decimal places.)

	NPV
Board Game	$
CD-ROM	$

b-2.

Which project should be chosen according to the NPV?

	Board Game
	CD-ROM

c-1.	Calculate the IRR. (Do not round intermediate calculation. Round the answers to 2 decimal places.)

	IRR
Board Game	%
CD-ROM	%

c-2.

Which project should be chosen according to the IRR?

	Board Game
	CD-ROM

d-1.	Calculate the incremental IRR. (Do not round intermediate calculation. Round the answer to 2 decimal places.)

Incremental IRR

%

d-2.

Which project should be chosen according to the incremental IRR?

	Board Game
	CD-ROM