Problem 5-11 NPV versus IRR 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 New Deepwater Submarine Fishing 0985,000 Ride $1920,000 405,000 970,000 2 3 538,000 455,000 835,000 820,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Deepwater Fishing Submarine Ride % % a-2. Based on the IRR, which project should you choose? O Deepwater Fishing O Submarine Ride Problem 5-11 NPV versus IRR 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 New Deepwater Submarine Fishing 0985,000 Ride $1920,000 405,000 970,000 2 3 538,000 455,000 835,000 820,000 a-1. Compute the IRR for both projects. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Deepwater Fishing Submarine Ride % % a-2. Based on the IRR, which project should you choose? O Deepwater Fishing O Submarine Ride c-3. Is the NPV decision consistent with the incremental IRR rule? Yes No