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 board game DVD

$0-$$$1,700-$$$3,700$

$17902,250$

$21,4501,670$

$33101,300$

a$.$ What is the payback period for each project?

b$.$ What is the NPV for each project?

c$.$ What is the IRR for each project?

d$.$ What is the incremental IRR?