What is the payback period for each project

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Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game or as an interactive CD-ROM, but not both. Consider the following cash flows of the two mutually exclusive projects for Mario Brothers. Assume the discount rate for Mario Brothers is 8 percent. Year Board Game CD-ROM 0 –$ 1,750 –$ 3,800 1 800 2,300 2 1,500 1,680 3 320 1,350

a. What is the payback period for each project? (Do not round intermediate calculations and round your final answers to 2 decimal places (e.g., 32.16).)

b. What is the NPV for each project?

c. What is the IRR for each project?

d. What is the incremental IRR?

Reference no: EM131012773

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