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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Comparing Investment Criteria 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 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 10 percent.

a. Based on the payback period rule, which project should be chosen?
b. Based on the NPV, which project should be chosen?
c. Based on the IRR, which project should be chosen?
d. Based on the incremental IRR, which project should be chosen?
A P-----------ayb-----------ack----------- pe-----------rio-----------d B-----------oar-----------d G-----------ame----------- Ye-----------ar -----------Cas-----------hfl-----------ows----------- Cu-----------mul-----------ati-----------ve -----------Cas-----------hfl-----------ows----------- 1 -----------$ 2-----------40,-----------000----------- $ -----------240-----------,00-----------0 2----------- $ -----------130-----------,00-----------0 $----------- 37-----------0,0-----------00 -----------3 $----------- 75-----------,00-----------0 $----------- 44-----------5,0-----------00 -----------Pay-----------bac-----------k p-----------eri-----------od -----------= $----------- 24-----------0,0-----------00