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I just need help finding the NPV values Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both
I just need help finding the NPV values
Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 16 percent. Year Fishing 0 -$985,000 1,920,000 1 405,000 2 538,000 3 455,000 970,000 835,000 820,000 a- 1. Compute the IRR for both projects. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 19.33 18.03 Ride a- Based on the IRR, which project should you choose? 2. Submarine Ride Deepwater Fishing b- Calculate the incremental IRR for the cash flows. (Do not round 1. intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 16.47 IRR b- Based on the incremental IRR, which project should you choose? 2. Submarine Ride Deepwater Fishing c- Compute the NPV for both projects. (Do not round intermediate 1. calculations. Round your answers to 2 decimal places, e.g., 32.16.) NPV Ride Based on the NPV, which project should you choose? 2. c- Deepwater Fishing Submarine Ride c- Is the NPV decision consistent with the incremental IRR rule? 3. Yes NoStep by Step Solution
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