Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market...

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Wii Brothers, a game manufacturer, has a new idea for anadventure game. It can market the game either as a traditionalboard game or as an interactive DVD, but not both. Consider thefollowing cash flows of the two mutually exclusive projects for thecompany. Assume the discount rate is 11 percent.

Year Board Game DVD
0 $ -1,150 $ -2,600
1 680 1,700
2 900 1,560
3 200 750
1. What is the NPV for each project? (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.)

  NPV
  Board game $
  DVD $

c.
2. What is the IRR for each project? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.)

IRR
  Board game %
  DVD %

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Transcribed Image Text

Wii Brothers, a game manufacturer, has a new idea for anadventure game. It can market the game either as a traditionalboard game or as an interactive DVD, but not both. Consider thefollowing cash flows of the two mutually exclusive projects for thecompany. Assume the discount rate is 11 percent. YearBoard GameDVD0$-1,150$-2,60016801,70029001,56032007501. What is the NPV for each project? (Do not roundintermediate calculations and round your answers to 2 decimalplaces, e.g., 32.16.) NPV Board game$ DVD$ c.2. What is the IRR for each project? (Do not roundintermediate calculations and enter your answers as a percentrounded to 2 decimal places, e.g., 32.16.) IRR Board game% DVD%