Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 13 percent.

Project A: Nagano NP-30.

Professional clubs that will take an initial investment of $1,050,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Project B: Nagano NX-20.

High-end amateur clubs that will take an initial investment of $781,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

NP-30 NX-20

Year

0 $ 1,050,000 $ 781,000

1 1 365,000 284,000

2 355,000 286,000

3 330,000 274,000

4 335,000 270,000

5 245,000 206,000

Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places (e.g., 32.161) and other answers to 2 decimal places (e.g., 32.16).)

NP-30 NX-20

NPV $_______ $__________

IRR __________% ____________%

PI ___________ _____________

What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Incremental IRR _________%