Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 15 percent.
Project A: Server CPU .13 micron processing project 

By shrinking the die size to .13 micron, the company will be able to offer server CPU chips with lower power consumption and heat generation, meaning faster CPUs.
Project B: New telecom chip project
Entry into this industry will require introduction of a new chip for cell phones. The know-how will require a larger amount of up-front capital, but success of the project will lead to large cash flows later on.

Please fill in the following table:

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YEAR A в -$675,000 -$1,150,000 330,000 345,000 2 330,000 375,000 260,000 385,000 4 195,000 455,000 135,000 575,000 3. IMPLICATIONS A NPV IRR Incremental IRR PI