Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 16 percent. Deepwater Year Fishing 0 $995,000 1 415,000 2 546,000 3 465,000 Submarine Ride 11,940,000 990,000 845,000 840,000 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.) a-2. Based on the IRR, which project should you choose? b-1. 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.) b-2. Based on the incremental IRR, which project should you choose? C-1. Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) C-2. Based on the NPV, which project should you choose? C-3. Is the NPV rule consistent with the incremental IRR rule? X Answer is complete but not entirely correct. a- 1. Deepwater Fishing IRR 19.94 % Submarine Ride IRR 18.57 % IRR decision Deepwater fishing Incremental IRR 16.93 a- 2. b- 1. b- 2. C- 1. Incremental IRR decision Submarine ride Deepwater fishing NPV $ 182,873.78 Submarine ride NPV $ 289,451.54 X C- 2. NPV decision Submarine ride C- 3. Are the rules consistent? Yes