Question: 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.
| 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 | ||||
Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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