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Burnley Brothers, a game manufactures, has a new idea for an adventure game. It can market the game either as a traditional board game or

Burnley Brothers, a game manufactures, has a new idea for an adventure game. It can market the game either as a traditional board game or as an online game. Consider the following cash flows of two mutually exclusive projects. Assume the required return for both projects is 15%. Given this information, which one of the following statements is correct?

Year

Board Game: Project A

Online Game: Project B

0

-$75,000

-$292,500

1

$29,000

$86,000

2

$30,250

$178,000

3

$45,480

$200,400

Group of answer choices

You should accept Project B and reject Project A based on their respective NPVs.

You should accept Project A and reject Project B based on their respective IRRs.

You should accept both projects based on both the NPV and IRR decision rules.

You should accept Project B and reject Project A based on their respective IRRs.

You should accept Project A and reject Project B based on their respective NPVs.

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