1. Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can...
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1. 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, er an VCR board game. 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 0 (initial cost) 1 2 3 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? Board Game -$750 640 480 80 DVD -$1,500 1,180 670 320 1. 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, er an VCR board game. 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 0 (initial cost) 1 2 3 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? Board Game -$750 640 480 80 DVD -$1,500 1,180 670 320
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Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Posted Date:
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