Question: excel preffered Project B: New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know-how will

 excel preffered Project B: New telecom chip project Entry into this

excel preffered

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 capital, but success of the project will lead to large cash flows later on Year Project A Project B 0 665,000866,000 247,000 348,000 352,000 398,000 483,000 332,000 343,000 251,000 176,000 112,000 4 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.) Project A Project B NPV IRR PI $319576.60 29.94 1.48 $521188.82 27.79 1.60 What is the incremental 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 | 3,08 0 %

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