Question: Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC) Both projects require an annual return of 18 percent
Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC) Both projects require an annual return of 18 percent epwater New Su Fishing Ride 0$1,045,000 $2,040,000 1,090,000 895,000 940,000 465,000 586,000 515,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations. 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 O Deepwater Fishing O Submanine Ride b.1. Calculate the incremental IRR for the cash fows. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, o.. 32.16) Incremental IRC b 2. Based on the incremental IRR, which project should you choose? O Submanne Ride O Deepwater Fishing c.1. Compute the NP'V for both projects (Do not round intermediate calculations. Round your answers to 2 decimal places, e. 32.16.) NPV Deepwater Fishing Submarine Ride c2. Based on the NPV, which project should you choose? O Submarine Ride O Deepwater Fishing c-3. Is the NPV decision consistent with the incremental IRR rule
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