Consider the following cash flows of two mutually exclusice projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 9 percent.

year dry prepeg solvent prepeg

0 -1,850,000 -825,000

1 1,115,000 450,000

2 930,000 750,000

3 765,000 420,000

a. what is the payback period for both projects?

b. what is the NPV for both projects?

c.what is the IRR for both projects?

d. calculate the Incremental IRR for the cash flows?