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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 13 percent.
Project A: Nagano NP-30.
Professional clubs that will take an initial investment of $900,000 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 $646,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.
Year NP-30 NX-20
0$ 900,000$ 646,000
1335,000255,000
2325,000260,000
3300,000245,000
4290,000225,000
5200,000176,000
Complete the following table:
Note: 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.
Find NPV , IRR, PI for both NP-30 AND NX-20
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 2 decimal places, e.g.,32.16.

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