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FinanceQ&A LibraryA Game manufacturer has a new idea for an Adventure game. It can lauch the game as a board game or an Interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate is 12%. Year Board Game DVD 0 -$950 -$2,200 1 $650 $1,500 2 $650 $1,250 3 $160 $150 a) What is the payback period for each project? in years? b) What is the NPV for each project? c) What is IRR for each project? in %? d) What is the incremental IRR? in %?Start your trial now! First week only $4.99!*arrow_forward*

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A Game manufacturer has a new idea for an Adventure game. It can lauch the game as a board game or an Interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate is 12%.

Year Board Game DVD

0 -$950 -$2,200

1 $650 $1,500

2 $650 $1,250

3 $160 $150

a) What is the payback period for each project? in years?

b) What is the NPV for each project?

c) What is IRR for each project? in %?

d) What is the incremental IRR? in %?

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