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

Mario Brothers, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as an interactive smart-phone 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.

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A) Based on the IRR, which project should be chosen?

B Based on the MIRR, which project should be chosen?

Which would your choose?

Year Board Game Smart-phone App -$320,000 -$550,000 $240,000 $310,000 $130,000 $280,000 $75,000 $195,000

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