Reference no: EM132528643
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 an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate for both projects is 10 percent.
YearBoard GameDVD0-$1,600 -$3,500 1 770 2,150 2 1,350 1,650 3 290 1,200
a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Payback periodBoard game1.61
1.61 Correct
yearsDVD1.82
1.82 Correct
years
b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
NPVBoard game$ 433.58
433.58 Correct
DVD$ 719.76
719.76 Correct
c. What is the IRR for each project? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
IRRBoard game26.30
26.30 Correct
%DVD22.65
22.65 Correct
%
d. What is the incremental IRR? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Incremental IRR is equal?
|
How to calculate expected cash flow probabilities
: You are considering a 5-year investment project which is expected to cost $1, 000, 000. In each year, you have decided that there are 3 possible states
|
|
Find and calculate the cost per cuddly koala for job number
: How might the managers at Toys World use this information? Prepare journal entries to record the incurrence of production costs.
|
|
Profitable project according to the npv decision rule
: A project has an initial cost of I, has a required return of r, and pays C annually for N years.
|
|
Described an output in a management accounting system
: Which of the following can be described as an output in a management accounting system? special report preparation,managing information
|
|
What is the payback period for each project
: Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game
|
|
Should jansung company make or buy the phones
: Applying differential analysis to the situation, should Jansung Company make or buy the phones? Jansung Company manufactures 5,000 telephones per year.
|
|
What is your view on healthcare management
: What is your view on HealthCare Management. Impact of Health insurance in Healthcare Management
|
|
HI5019 Cyber Security Case Studies Assignment
: Assessment Title - Cyber Security Case Studies. Description of case company in each case - General information of the company
|
|
Determine the actual materials cost incurred for manufacture
: Determine the actual materials cost incurred for the manufacture of 5,000 finished units, and compute the total materials variance.
|