Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 9 percent.

Project A:	Nagano NP-30.
	Professional clubs that will take an initial investment of $870,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Project B:	Nagano NX-20.
	High-end amateur clubs that will take an initial investment of $619,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.

Year

NP-30

NX-20

0

$

870,000

$

619,000

1

329,000

246,000

2

319,000

248,000

3

294,000

236,000

4

281,000

216,000

5

191,000

170,000

Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places (e.g., 32.161) and other answers to 2 decimal places (e.g., 32.16).)

	NP-30			NX-20
NPV	$			$
IRR		%			%
PI

What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Incremental IRR

%