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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 11 percent. Project Nagano
Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 11 percent. Project Nagano NP-30. A: Professional clubs that will take an initial investment of $980,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project. Project Nagano NX-20. B: High-end amateur clubs that will take an initial investment of $718,000 at Time 0 . Introduction of new product at Year 6 will terminate further cash flows from this project. 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.) What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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