Mario brothers a game manufacturer has a new idea for an adventure game. It can...

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Finance

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.

Year Board game DVD

0 -$1, 100 -$2,500

1 670 1,650

2 800 1,370

3 190 700

A/ What is the pay back period for each project?

B/ What is the NPV for each project

C/ What is the IRR for each project

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