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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 1 3 percent. Project
Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is percent.
Project A: Nagano NP
Professional clubs that will take an initial investment of $ at Time Introduction of new product at Year will terminate further cash flows from this project.
Project B: Nagano NX
Highend amateur clubs that will take an initial investment of $ at Time Introduction of new product at Year will terminate further cash flows from this project.
Year NP NX
$ $
Complete the following table:
Note: Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index PI answers to decimal places, eg and other answers to decimal places, eg
What is the incremental IRR of investing in the larger project?
Note: Do not round intermediate calculations and enter your answer as a percent rounded to decimal places, eg
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