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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

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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 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 0 Board Game DVD -$1,450 53,200 740 2,000 1,200 1,620 260 1,050 1 2 3 a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 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., 32.16.) 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., 32.16.) years years a. Board game DVD b. Board game DVD c. Board game DVD % % d. Incremental IRR %

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