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 $1,000,000 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 $736,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year NP-30 NX-20

0 $ 1,000,000 $736,000

1 355,000 271,000

2 345,000 284,000

3 320,000 269,000

4 320,000 255,000

5 230,000 196,000

Complete the following table:

	NP-30	NX-20
NPV	$	$
IRR	%	%
PI

What is the incremental IRR of investing in the larger project

What is the required return?