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Consider the following cash flows of two independent projects that Android Brothers Corporation is considering. It can market the game either as a traditional board
Consider the following cash flows of two independent projects that Android Brothers Corporation is considering. It can market the game either as a traditional board game or as an online game. Assume the required return for both projects is 12%. 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 O You should accept Project A and reject Project B based on their respective NPVs. O You should accept Project B and reject Project A based on their respective IRRs. You should accept both projects based on both the NPV and IRR decision rules. O You should accept Project A and reject Project B based on their respective IRRs. You should accept Project B and reject Project A based on their respective NPVs
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