Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either...

Transcribed Image Text:

Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as a PC game, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate for both projects is 11 percent. Year Board Game PC 0 -$ 900 -$2,100 1 630 1,450 2 600 1,150 3 150 500 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.) a. Board game payback 1.45 years PC game payback 1.57 years b. Board game NPV $ 264.22 PC game NPV $ 505.27 C. Board game IRR 23.60 % PC game IRR d. Incremental IRR 23.60% 0.00% Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as a PC game, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate for both projects is 11 percent. Year Board Game PC 0 -$ 900 -$2,100 1 630 1,450 2 600 1,150 3 150 500 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.) a. Board game payback 1.45 years PC game payback 1.57 years b. Board game NPV $ 264.22 PC game NPV $ 505.27 C. Board game IRR 23.60 % PC game IRR d. Incremental IRR 23.60% 0.00%