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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
Find NPV IRR, PI for both NP AND NX
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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