Question: 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:

 Consider two mutually exclusive new product launch projects that Nagano Golf

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 $860,000 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 $610,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project Year 0 1 2 3 4 5 NP-30 -$860,000 327,000 317,000 292,000 278,000 188,000 NX-20 -$ 610,000 243,000 244,000 233,000 213,000 168,000 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.)

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