1. Consider the cash flows on two mutually exclusive projects for BRC Corp. Both projects require an annual return of 17%.

Year	Fishing	Waterslide
0	($1,010,000)	($1,970,000)
1	$430,000	$1,020,000
2	$558,000	$860,000
3	$480,000	$870,000

1. Compute the IRR for each project. (2 pts)
2. Based on the IRR, which project should you choose? (1 pt)
3. Calculate the incremental IRR for the cash flows. (2 pts)
4. Based on incremental IRR, which project should you choose? (1 pt)
5. Compute the NPV for both projects. (2 pts)
6. Based on the NPV, which project should you choose? (1 pt)

Is the NPV run consistent with the incremental IRR rule? (1 pt)