Nintendo, a game manufacturer, has a new idea for an adventure game. It can either market the game as a traditional board game or as a mobile app. but not both. Consider the following cash flows of the two mutually exclusive projects for Nintendo. Assume the discount rate for Nintendo is $10\%.$

Based on the NPV$,$ which same format should Nintendo choose?

Year

$0$

$1$

$2$

$3$

Board game

$-320,000$

$240,000$

$130,000$

$75,000$

Mobile app

$-550,000$

$310,000$

$280,000$

$195,000$

Board game with NPV: $109,729\mathrm{.}53$

Board game with NPV: $61,968\mathrm{.}44$

Mobile app with NPV: $61,968\mathrm{.}44$

Mobile app with NPV: $109,729\mathrm{.}53$