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	$	995,000		$	1,940,000
1		415,000			990,000
2		546,000			845,000
3		465,000			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.)

Deepwater Fishing ___________%

Submarine Ride __________%

a-2.	Based on the IRR, which project should you choose?
	Deepwater Fishing Submarine Ride

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.)

Incremental IRR ___________%

b-2.	Based on the incremental IRR, which project should you choose?
	Submarine Ride Deepwater Fishing

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.)

Deepwater Fishing ___________%

Submarine Ride __________%

c-2.	Based on the NPV, which project should you choose?
	Deepwater Fishing Submarine Ride

c-3.	Is the NPV decision consistent with the incremental IRR rule?
	No Yes