Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 17 percent. Year 0 123 1 2 3 Deepwater Fishing Submarine Ride -$ 1,020,000 440,000 566,000 490,000 -$ 1,990,000 1,040,000 870,000 890,000 a-1. Compute the IRR for both projects. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. a-2. Based on the IRR, which project should you choose? b-1. Calculate the incremental IRR for the cash flows. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b-2. Based on the incremental IRR, which project should you choose? c-1. Compute the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c-2. Based on the NPV, which project should you choose? c-3. Is the NPV rule consistent with the incremental IRR rule? a-1. Deepwater Fishing IRR Submarine Ride IRR a-2. IRR decision b-1. Incremental IRR b-2. Incremental IRR decision c-1. Deepwater fishing NPV Submarine ride NPV c-2. NPV decision c-3. Are the rules consistent? % % %

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 17 percent. a-1. Compute the IRR for both projects. Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16 . a-2. Based on the IRR, which project should you choose? b-1. Calculate the incremental IRR for the cash flows. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b-2. Based on the incremental IRR, which project should you choose? c-1. Compute the NPV for both projects. Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16 . c-2. Based on the NPV, which project should you choose? c-3. Is the NPV rule consistent with the incremental IRR rule