Question: Question No: 02 This is a subjective question, hence you have to write your answer in the Text-Field given below. Mario Brothers Ltd., a game

Question No: 02 This is a subjective question, hence you have to write your answer in the Text-Field given below. Mario Brothers Ltd., 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 Mario Brothers. Assume that discount rate for Mario brothers Ltd. is 10% Which project should be chosen? What is the additional value Mario Brothers will create by choosing this project (the one chosen) over the other? The decision is to be taken at time to. The cash flow projections and initial investment values are provided in Table below: Year Board Game(Cash flows 5) DVD (Cash flows 5) -1700 0 -900 350 1300 450 900 3 100 300

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