Net Present Value Versus Internal Rate of Return excel 7.11 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. Deepwater fishing New submarine ride -$750,000 -$2,100,000 310,000 1,200,000 430,000 760,000 850,000 330,000 As a financial analyst for BCRC, you are asked to answer the following questions: a. If your decision rule is to accept the project with the greater IRR, which project should you choose? b. Because you are fully aware of the IRR rule's scale problem, you calculate the incremental IRR for the cash flows. Based on your computation, which project should you choose? c. To be prudent, you compute the NPV for both projects. Which project should you choose? Is it consistent with the incremental IRR rule