et Present Value versus Internal Rate of Retu rn 11 Consider the following cash flows on two mutually exclusive projects for the B.c Recreation Corporation (BCRC), Both projects require an annual return of 14 percent. Year Deepwater fishing New submarine ride -$2,100,000 1,200,000 760,000 850,000 0 -$750,000 310,000 430,000 330,000 2 3 a. If your decision rule is to accept the project with the greater IRR, which project b Because you are fully aware of the IRR rule's scale problem, you calculate the As a financial analyst for BCRC, you are asked to answer the following questions: should you choose? incremental IRR for the cash flows. Based on your computation, which project should you choose? . To be prudent, you compute the NPV for both projects. Which project should you choose? Is it consistent with the incremental IRR rule