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What is the payback period for each project

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Reference no: EM133042271

Question - 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 9 percent.

Year

Board

Game DVD

0

-$800

-$1,900

1

610

1,350

2

500

950

3

130

400

Required -

a. What is the payback period for each project?

b. What is the NPV for each project?

c. What is the IRR for each project?

d. What is the incremental IRR?

Reference no: EM133042271

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