Fun Center is evaluating the purchase of a new game to be located on its Midway. The company has narrowed its choices down to two: the Wacky Water Race game and the WhackAMole game. Financial data about the two choices follow.

	Wacky Water Race	WhackA Mole
Investment	$37,000	$19,000
Useful life	5	6
Estimated annual net cash inflows for 8 years	$10,000	$4,000
Residual value	0	0
Depreciation method	straightline	straightline
Required rate of return	8%	12%

What is the Internal rate of return (IRR) for the

WhackAMole

game? If IRR is used to choose which game which game would Family Day Out Fun Center choose?

A. between 6-8% and would choose Whack-A-Mole

B. 12% and would choose Whack-A-Mole

C. 10% and would choose Wacky Water Race

D. between 6-8% and would choose Wacky Water Race