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Question No: 02 Rovio Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board
Question No: 02 Rovio Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game, a DVD video game, and mobile-app based game. These are not mutually exclusive. However, there is a budget constraint of US $20,000 for the investment. Consider the following cash flows for the three projects for Rovio Brothers. Assume that the discount rate for Rovio brothers is 10%. It is a five-year project. The cash flows projected and investment amount at Year O is provided in Table. Which ways should Rovio Brothers market the game, considering a budget constraint of US $20,000 and why? DVD Board Game (5) video Mobile-app based game (S) game (5) Year 0 -10000 -10000 -20000 1 3000 5000 7000 2 4500 4000 8000 3 5000 3000 9000 4 5000 4000 5000 5 6000 2000 5000
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