Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 8 percent.

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Project A:Server CPU .13 micron processing project By shrinking the die size to .13 micron, the company will be able to offer server CPU chips with lower power consumption and heat generation, meaning faster CPUs. Project B:New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know-how will require a large amount of up-front capitalIr but success of the project will lead to large cash flows later on. Year Project A Project B U 3705,U00 $910,U00 1 340,000 255,000 2 355,000 360,000 3 255,600 360,600 4 130,U00 410,U00 5 120,600 495,U00 Complete the following table: (Do not round intermediate calculations. Enter the ll'ilI as a percent. Round your protability index {PI} answers to 3 decimal places, e.g.. 32:161. and other answers to 2 decimal places, e.g.. 32.16.} Project a Project B NPV S S IRE % % PI What is the incrementa IRR of investing in the larger project? {Do not round intermediate calculations. Enter your answer as a percent and round your answer to 2 decimal places, e.g.. 32.16.) Incremental IRR 96