Question No 05 Rovio Brothers A Game Manufacturer Has A New Idea For An Adventure Game It Can Market The Game As A T 1 (54.95 KiB) Viewed 81 times
Question No: 05 Rovio Brothers, a game manufacturer, has a new idea for an adventure game. It can market the game as a traditional board game, a DVD video game, and mobile-app based game. These are not mutually exclusive. However, there is a budget constraint of US $20,000 for the investment. Consider the following cash flows for the three projects for Rovio Brothers. Assume that the discount rate for Rovio brothers is 11%. It is a five-year project. The cash flows projected and investment amount at Year O is provided in Table. Which ways should Rovio Brothers market the game, considering a budget constraint of US $20,000 and why? [5] DVD video Mobile-app based Year Board Game ($) game ($) game ($) 0 -10000 -10000 -10000 1 4500 7000 5000 2 5000 6000 6000 3 5000 5000 6000 4 6000 4000 5000 5 7000 4000 4000
Rovio Brothers. Assume that the discount rate for Rovio brothers is 11%. It is a five-year project. The cash flows projected and investment amount at Year 0 is provided in Table. Which ways should Rovio Brothers market the game, considering a budget constraint of US $20,000 and why? [5] DVD video Mobile-app based Year Board Game ($) game ($) game ($) 0 -10000 -10000 -10000 1 4500 7000 5000 2 5000 6000 6000 3 5000 5000 6000 4 6000 4000 5000 5 7000 4000 4000 Options
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