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: Nagano NP-30.

Professional clubs that will take an initial investment of $990,000 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 $727,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year NP-30 NX-20

0 $ 990,000 $ 727,000

1 353,000 270,000

2 343,000 283,000

3 318,000 268,000

4 317,000 252,000

5 227,000 194,000

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 %