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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
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 percent.
a What is the payback period for each project? Do not round intermediate
calculations and round your answers to decimal places, eg
b What is the NPV for each project? Do not round intermediate calculations and
round your answers to decimal places, eg
c What is the IRR for each project? Do not round intermediate calculations and enter
your answers as a percent rounded to decimal places, eg
d What is the incremental IRR? Do not round intermediate calculations and enter your
answer as a percent rounded to decimal places, eg
Answer is complete but not entirely correct.
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