Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation $($BRC$).$ Both projects require an annual return of $14$ percent.

Year Deepwater Fishing New Submarine Ride

$0$$ $875,000$$ $1,650,000$

$1330,000890,000$

$2480,000730,000$

$3440,000590,000$

a$-1.$ Compute the IRR for both projects. $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

a$-2.$ Based on the IRR, which project should you choose?

multiple choice $1$

Submarine Ride

Deepwater Fishing

b$-1.$ 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$.,32\mathrm{.}16.)$

b$-2.$ Based on the incremental IRR, which project should you choose?

multiple choice $2$

Submarine Ride

Deepwater Fishing

c$-1.$ Compute the NPV for both projects. $($Do not round intermediate calculations and round your answers to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$-2.$ Based on the NPV$,$ which project should you choose?

multiple choice $3$

Deepwater Fishing

Submarine Ride

c$-3.$ Is the NPV decision consistent with the incremental IRR rule?

multiple choice $4$

Yes

No