What is the payback period for each project

Assignment Help Financial Management

Reference no: EM132057117

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 8 percent.

Year	Board Game		DVD
0	-$	1,000	-$	2,300
1		650		1,550
2		700		1,350
3		170		600

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.)

Payback period
Board game	years
DVD	years

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.)

NPV
Board game	$
DVD	$

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.)

	IRR
Board game	%
DVD	%

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.)

Incremental IRR %

Reference no: EM132057117

Questions Cloud

What is the npv of this project if they face : The initial cost of the investment is $200,000. They will pay 10% as a down payment and finance the rest of the initial investment over 10 years.

What would be the set of transformation : What would be the set of transformation needed to map circle M on to circle P? What can be said about the circles based on those transformations?

Shape of the resulting object : If a three dimensional object is created by rotating a circle about one of its diameters. What's the shape of the resulting object?

What is the optimal production quantity for the card : The company receives $1.30 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value.

What is the payback period for each project : Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 8 percent.

Cost to carpet a rectangular floor measuring : What will it cost to carpet a rectangular floor measuring 18 feet by 27 feet if the carpet costs $ 18.38 per square? yard?

What is the circumference of a circle : What is the circumference of a circle that circumscribes a triangle with side lengths 3,4 and 5?

How many square meters of carpeting will she? need : The carpeting is sold in square meters. How many square meters of carpeting will she? need? ? (Use 1 yd almost equals ˜ 0.9144? m.)

Which line did the student make the first mistake : Line 1 Segment AC equals 2. Segment FE equals 2. Segment AC is congruent to segment FE

User Account

All Pages