Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 8 percent.

Project A:	Nagano NP-30.
	Professional clubs that will take an initial investment of $910,000 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 $655,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year	NP-30			NX-20
0	$	910,000		$	655,000
1		337,000			258,000
2		327,000			264,000
3		302,000			248,000
4		293,000			228,000
5		203,000			178,000
Complete the following:

Input area: NP-30 NX-20 Annual cash fiows Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Required return Output area a. NPV (NP-30) NPV (NX-20) NPV criterion implies to accept b. IRR (NP-30) IRR (NX-20) IRR decision rule implies to accept d. Year Incremental CF Incremental IRR (crossover) A #NUM! c. Profitability index (NP-30) Profitability index (NX-20) Pl decision rule implies to accept