Consider two mutually exclusive new product launch projects that Nagano Gold is considering. Assume the discount rate for both products is 17 percent.

Project A: Nagano NP-30

Professional clubs that will take an initial investment of $616,000 at Year 0. For each of the next 5 years, (Years 1-5), sales will generate a consistent cash flow of $245,000 per year. 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 $530,000 at Year 0. Cash flow at Year 1 is $160,000. In each subsequent year, cash flow will grow at 10 percent per year. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year NP-30 NX-20

0 -$610,000 -$530,000

1 245,000 160,000

2 245,000 176,000

3 245,000 193,600

4 245,000 212,960

5 245,000 234,256

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

NP-30 NX-20

Payback __________ years _________ years

IRR __________ % _________%

PI ___________ ___________

NPV ___________ ___________