Time (End of Year)	Net Cash Flow (in millions)
Xbox	Nintendo	Sony
0	($40)	($40)	($40)
1	$34	$44	$41
2	$10	$16	$18
3	$5	$4
4	$1
IRR	17.04%	38.82%	39.80%

1. 1.WhatisthePaybackPeriodforDeadorAlivewhenmarketedunderthethreedifferenthardwarecompanies?Assumingarequiredpaybackperiodof1year,whichcompanywouldyouallowtocarrythenewproduct?(AlreadyAnswered)
3. 2.Assuming a discount rate of 10%, what is the Net Present Value (NPV) under each system? Under which system, if any, would you be willing to produce Dead or Alive? (Already Answered)
4. 3.WhataretheInternalRatesofReturn(IRR)undereachmarketer? (Already answered)
5. Whichmarketer(s)has/haveacceptableIRRs?(NEEDANSWERTO.refertoexcelfilefortheotherdata)
6. _______________________________________________________________________________________________________________________________

"Which marketer(s) has/have acceptable IRRs?" was not answered. Are you able to explain that or find that one? It notes that Accept if IRR is > or equal the rate of return. Please find the REQUIREDrate of return and explain how you found it.

Answers Year Xbox Nintendo Sony 0 -40 -40 -40 1 34 44 41 2 10 16 18 3 5 4 1 4 1 Calculating the payback period Year Xbox CCF Nintendo CCF 0 -40 -40 -40 -40 1 34 -6 44 4 2 10 4 16 20 3 5 9 4 1 10 Payback = 1.6 yrs 0.91 yrs Assuming 1 year as the max, I would suggest Nintendo 2 Calculating NPV Year Xbox Nintendo Sony 0 -40 -40 -40 1 34 44 41 2 10 16 18 3 5 4 1 4 NPV = Present value of cash flows - Initial investment Xbox Present value @ 10% $ 43.61 $ Initial investment NPV Nintendo 53.22 $ -40 $ 3.61 Sony -40 $ 13.22 -40 $ I would prefer sony as it has highest NPV 3 Year Xbox Nintendo 55.15 Sony 15.15 0 -40 -40 -40 1 34 44 41 2 10 16 18 3 5 4 1 IRR 4 17.04% 38.82% 39.80% I would prefer sony as it has highest IRR 4 From, the above analysis, I would suggest Sony should be used for the hardware system, 5 ANPV = NPV PVIFA Xbox NPV $ PVIFA ANPV = Nintendo 3.61 $ 3.1699 $ 1.14 Sony 13.22 $ 1.7355 $ 7.62 15.15 2.4869 $ 6.09 The company should use Nintendo, if the projects are mutually excelusive whereas if inde Sony CCF -40 -40 41 1 18 19 4 23 0.98 yrs d for the hardware system, as the Payback is less than 1 year and it has highest NPV as well as IRR y excelusive whereas if independent all the projects can be used as they have positive ANPV PV as well as IRR tive ANPV