Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game, or an interactive DVD. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate for both projects is 10 percent.

Year	Board Game	DVD
0 (initial cost)	-$750	-$1,500
1	640	1,180
2	480	670
3	80	320

a) Calculate the present value and NPV for the project of marketing the game as a traditional board game.

b) Calculate the present value and NPV for the project of marketing the game as an interactive DVD.

c) Which project should be invested in and why?