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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 1 2 percent. Project

Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both products is 12 percent.
Project A: Nagano NP-30.
Professional clubs that will take an initial investment of $700,000 at Year 0.
For each of the next 5 years, (Years 1-5), sales will generate a consistent cash flow of $300,000 per year.
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 $850,000 at Year 0.
Cash flow at Year 1 is $250,000. In each subsequent year, cash flow will grow at 10 percent per year.
Introduction of new product at Year 6 will terminate further cash flows from this project.
Year NP-30 NX-20
0$ 700,000$ 850,000
1300,000250,000
2300,000275,000
3300,000302,500
4300,000332,750
5300,000366,025
Complete the following table: (Do not round intermediate calculations. Round your "PI" answers to 3 decimal places, e.g.,32.161, and other answers to 2 decimal places, e.g.,32.16. Enter your IRR answers as a percent.)

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