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$$ $980,000$$ $1,910,000$

$1400,000960,000$

$2534,000830,000$

$3450,000810,000$

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$.,32\mathrm{.}16.)$

a$-2.$

Based on the IRR, which project should you choose?

multiple choice $1$

Deepwater Fishing Correct

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$.,32\mathrm{.}16.)$