Mario 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 a PC game, but not both. Consider the following cash flows of the two mutually exclusive projects. Assume the discount rate for both projects is 10 percent.

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

b. Based on the NPV, which project should be chosen?

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

d. Based on the incremental IRR, which project should be chosen?

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Year Board Game PC -$380,000 -$625,000 1 292,000 396,000 2 165,000 319,000 107,000 204,000 3.