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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.

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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. New Submarine Year Deepwater Fishing Ride 0 -$ 875,000 -$1,650,000 1 330.000 890,000 2 480,000 730,000 3 440,000 590,000 1-1. 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. 9.32.16) incrementar 5-2. Based on the incremental IRR, which project should you choose? O Submarine Ride O Deepwater Fishing c-1. Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, ... 32.16.) Deepwater Fishing Submarine Ride 2. Based on the NPV, which project should you choose? O Deepwater Fishing Submarine Ride c-3. Is the NPV decision consistent with the incremental Rule? Yes ONO

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