Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can market either the game as a traditional board game or as an interactive smartphone application, but not both. Consider the following cash flows of the two mutually exclusive projects for Mario Brothers. Assume the discount rate for the project is 10 percent.

Year 0 1 2 3

Board Game -$320,000 $240,000 $130,000 $75,000

Smart-phone App -$550,000 $310,000 $280,000 $195,000

(a) Based on the Payback period rule, which project should you choose?

(b) Based on the MPV, which project should you choose?

(c) Based on the IRR, which project should you choose?

(d) Based on the MIRR, which project should you choose?

(e) What project would you recommend?