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Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game
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 DVD, 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. Board Year DVD Game 0 -$850 $2,000 123 620 1,400 550 140 1,050 450 a. What is the payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Board game DVD Payback period b. What is the NPV for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Board game NPV ST
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