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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 11 percent.

Year Board Game DVD
0 $ -1,150 $ -2,600
1 680 1,700
2 900 1,560
3 200 750

1. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

NPV
Board game $
DVD $

c.

2. 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.)

IRR
Board game %
DVD %

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