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please complete entire question Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 8 percent.

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Consider two mutually exclusive R&D projects that Savage Tech is considering. Assume the discount rate for both projects is 8 percent. die size to sing project CPU che Project A: Server CPU .13 micron processing project By shrinking the die size to . 13 micron, the company will be able to offer server CPU chips with lower power consumption and heat generation, meaning faster CPUs. Project 8: New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know-how will require a large amount of up-front capital, but success of the project will lead to large cash Year Project A -$705,000 340,000 355,000 255,000 180,000 120,000 Project B -$910,000 255,000 360,000 360,000 410,000 495,000 Complete the following table: (Do not round intermediate calculations. the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g.. 32.161, and other answers to decimal places, e.g., 32.16.) Project A Project B NPV IRR IT What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations. Enter your answer as percent and round your answer to 2 decimal places, e.g., 32.16.) Project A: Server CPU . 13 micron processing project By shrinking the die size to . 13 micron, the company will be able to offer server CPU Chips with lower power consumption and heat generation, meaning faster CPUs Project B: New telecom chip project Entry into this industry will require introduction of a new chip for cell phones. The know-how will require a large amount of up front capital, but success of the project will lead to large cash flows later on. Year . Project A -$705,000 360,000 355,000 255,000 180,000 120,000 Project B - 5910,000 255,000 360,000 360,000 410,000 495,000 Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16.) Project B NPV TRR PI What is the incremental IRR of Investing in the larger project? (Do not round intermediate calculations. Enter your answer as a percent and round your answer to 2 decimal places, e.g. 32.16.) Incremental IRR

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