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

Wii Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game either as a traditional board game or as an interactive DVD, but not both. Consider the following cash flows of the two mutually exclusive projects for the company. Assume the discount rate is 11 percent. What is incremental IRR?

Year Board Game DVD
0 –$ 1,150 –$ 2,600
1 680 1,700
2 900 1,560
3 200 750
0 0
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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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