Question: ONLY NEED ANSWER TO C 1/ I know the answer to the other questions Consider the following cash flows on two mutually exclusive projects for
ONLY NEED ANSWER TO C 1/ I know the answer to the other questions
| Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 16 percent. |
| Year | Deepwater Fishing | New Submarine Ride | ||||
| 0 | $ | 995,000 | $ | 1,940,000 | ||
| 1 | 415,000 | 990,000 | ||||
| 2 | 546,000 | 845,000 | ||||
| 3 | 465,000 | 840,000 | ||||
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| a-1. | Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) |
deepwater - 19.94%
submarine ride - 18.57%
| Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
Incremental IRR - 16.93%
| c1. | Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
Deepwater fishing -
Submarine ride -
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