Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 12 percent.
Project A: Nagano NP-30
Professional clubs that will take an initial investment of $940,000 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 $650,000 at Time 0.
Introduction of new product at Year 6 will terminate further cash flows from this project.
Here are the cash flows:

Please fill in the following table:

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YEAR NP-30 NX-20 -$940,000 -$650,000 1 345,000 250,000 335,000 250,000 310,000 245,000 4 295,000 230,000 5 205,000 175,000 NP-30 IMPLICATIONS NX-20 NPV IRR Incremental IRR PI