two mutually exclusive new product launch projects that Nagano Golf is considering/ Assume the discount rate for both projects is 11 percent.

Project A: Nagano NP-30.

Professional clubs that will take an initial investment of $980,000 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 $718,000 at Time 0. Introduction of new product at year 6 will terminate further cash flows from

this project

Year NP-30 NX-20

0 -$980,000 -$718,000

1 $351,000 $267,000

2 $341,000 $283,000

3 $316,000 $267,000

4 $314,000 $249,000

5 $224,000 $192,000

Complete the following table:

NP-30 NX-20

NPV $? $?

IRR %? %?

PI ? ?

What is the incremental IRR of investing in the larger project?

Incremental IRR %?