Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 16 percent. Year Deepwater Fishing New Submarine Ride 0 -$980,000 -$1,910,000 1 400,000 960,000 2 534,000 830,000 3 450,000 810,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Deepwater Fishing % Submarine Ride %dots

Based on the IRR, which project should you choose?

multiple choice 1

a. Deepwater Fishing

b. Submarine Ride

Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Based on the incremental IRR, which project should you choose?

multiple choice 2

a. Deepwater Fishing

b. Submarine Ride