Consider the following cash flows of two mutually exclusive projects for Scotia Rubber Company. Assume the discount rate for Scotia Rubber Company is 8 percent: (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.) Year Dry Prepreg Solvent Prepreg 0 $ 1,760,000 $ 780,000 1 1,106,000 405,000 2 912,000 660,000 3 756,000 402,000

a. What is the payback period for each project? Payback period Dry Prepeg years Solvent Prepeg years

b. What is the NPV for each project? NPV Dry Prepeg $ Solvent Prepeg $

c. What is the IRR for each project? IRR Dry Prepeg % Solvent Prepeg %

d. Calculate the incremental IRR for the cash flows. Incremental IRR %