Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 9 percent.

Project A: Nagano NP-30. Professional clubs that will take an initial investment of $920,000 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 $664,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year NP-30 NX-20

0 $ 920,000 $ 664,000

1 339,000 261,000

2 329,000 268,000

3 304,000 251,000

4 296,000 231,000

5 206,000 180,000

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

%