Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 18 percent. Year 0 1 2 3 Deepwater Fishing -$ 1,045,000 465,000 586,000 515,000 Submarine Ride -$ 2,040,000 1,090,000 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. 895,000 940,000 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 retuin of 18 percent. a-1. Compute the IRR for both projects: Note: Do not round intermediate calculations and enter your onswers as o percent rounded to 2 decimal places, e.9, 32.16 . Q-2. Based on the IRR, which project should you choose? b-1. Calculate the incremental IiRk for the cash fiows. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 dicimal pioces, 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 ploces, e.g., 3216. c-2. Based on the NPV, which project should you choose? c-3. Is the NPV rule consistent with the incremental IRR rule