Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 18 percent.

Year	Deepwater Fishing	New Submarine Ride
0	$ 1,045,000	$ 2,040,000
1	465,000	1,090,000
2	586,000	895,000
3	515,000	940,000

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., 32.16.)

a-2.	Based on the IRR, which project should you choose?
	multiple choice 1 Deepwater Fishing Submarine Ride

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., 32.16.)

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., 32.16.)

c-2.	Based on the NPV, which project should you choose?
	multiple choice 3 Submarine Ride Deepwater Fishing

c-3.	Is the NPV decision consistent with the incremental IRR rule?
	multiple choice 4 Yes No