Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can marketthe 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 thecompany. Assume the discount rate for both projects is 10 percent.Year Board Game0-$ 75016402348080DVD-$1,5001,180670320a. What is the payback period for each project? (Do not round intermediatecalculations and round your answers to 2 decimal places, e.g., 32.16.)b. What is the NPV for each project? (Do not round intermediate calculations andround your answers to 2 decimal places, e.g., 32.16.)c. What is the IRR for each project? (Do not round intermediate calculations and enteryour answers as a percent rounded to 2 decimal places, e.g., 32.16.)d. What is the incremental IRR? (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)a. Board gamea. DVDb. Board gameb. DVDc. Board gameyearsyears%c. DVD%d. Incremental IRR%

> Given data:> Discount rate = 10%YearBoard gameDVD0-750-1500164011802480670380320

Answered: Wii Brothers, a game manufacturer, has…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 12 percent. Year Board Game DVD O -$1,450 $3,200 1 740 2,000 2 1,200 1,620 3 260 1,050 a. What is the payback period for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. What is the NPV for each project? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) c. What is the IRR for each project? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) d. What is the incremental IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Board game years DVD years b.…
Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 8 percent. Year Board Game DVD 0 –$ 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.) 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.) 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.) d. What is the incremental IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2…
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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. \table[[Year,Board Game,DVD],[0,-$1,300,-$2,900
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