I. In the following Excel spread sheet, assume the discount rate is 5%, which of the following equations will give the correct net present value: 500 100 200 100 a. NPV(Al, A2:A4) C. d -NPV(5%, A2:A4)+Al -NPV(5%, A2:A4) 2. Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 15 percent. Deepwater New Submarine Year Fishing Ride 0 $960,000 $1,870,000 1 380,000 2 518,000 3 430,000 920.000 810.000 770,000 Since you anticipate there is going to be a potential conflict when using IRR, you would like to avoid the problem by using incremental IRR in incremental cash flows. Which of the following two incremental cash flows should you use if you want to follow the conventional IRR rules? a. Submarine - Fishing -$ 910,000 $540,000 $292,000 $ 340,000 b. Fishing- Submarine $ 910,000 -$540,000 $292.000 340,000