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

Year	Board Game			DVD
0	$	750		$	1,500
1		640			1,180
2		480			670
3		80			320

a) Based on the payback period rule, which project should be chosen?

b) Based in the NPV, which project should be chosen?

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