Problem $5-14$ Comparing Investment Criteria

Wii 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 the company. Assume the discount rate is $12$ percent.

Year Board Game DVD

$0$$ $1,200$$ $2,700$

$16901,750$

$29501,570$

$3210800$

a$.$

What is the payback period for each project? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the NPV for each project? $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$

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$.,32\mathrm{.}16.)$