Question: Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 12 percent. Project A:

Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 12 percent. Project A: Project B: Nagano NP-30. Professional clubs that will take an initial investment of $940,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project. Nagano NX-20. High-end amateur clubs that will take an initial investment of $682,000 at Time O. Introduction of new product at Year 6 will terminate further cash flows from this project. Year NP-30 0 -$940,000 012345 NX-20 -$682,000 343,000 260,000 333,000 276,000 308,000 257,000 302,000 237,000 212,000 184,000 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.) 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.) NPV IRR PI NP-30 % NX-20 % What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Incremental IRR %

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