MT 11

Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for Tokyo Rubber Company is 8 percent. Year Dry Prepreg Solvent Prepreg 0 - $1, 840,000 - 820,000 1 1, 114,000 445,000 2 928,000 740,000 3 764,000 418,000 What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) Payback period Dry Prepeg years Solvent Prepeg years What is the NPV for both projects? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) NPV Dry Prepeg $ Solvent Prepeg $ What is the IRR for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)) IRR Dry PREPEG % Solvent Prepeg % Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Incremental IRR %