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

Year Dry Prepreg Solvent Prepreg

0 -$1,720,000 -$760,000

1 1,102,000 385,000

2 904,000 620,000

3 752,000 394,000

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

Payback period

Dry Prepreg ______years

Solvent Prepreg ______years

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

NPVDry Prepreg $______

NPV Solvent Prepreg $________

c.What is the IRR for each project?(Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)

IRRDry Prepreg_______%

IRR Solvent Prepreg_______%

d.Calculate the incremental IRR for the cash flows.(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Incremental IRR________%