Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 12 percent.

Year	Dry Prepreg	Solvent Prepreg
0	$ 1,800,000	$ 800,000
1	1,110,000	425,000
2	920,000	700,000
3	760,000	410,000

a.	What is the payback period for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Dry Prepeg ___________________ years

Solvent Prepeg ________________ years

b.	What is the NPV for both projects? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Dry Prepeg $___________________

Solvent Prepeg $________________

c.	What is 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.)

Dry Prepeg ___________________ %

Solvent Prepeg ________________ %

d.	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 _____________%