Qeclsions rule in part (d) consistent with those of the IRR rule? e. Are the uhder the NPV 13. NPV versus IRR Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation. Both projects require an annual return of 15 percent. YEAR DEEPWATER FISHING NEW SUBMARINE RIDE -$835,000 450,000 410,000 335,000 -$1,650,000 1,050,000 675,000 520,000 As a financial analyst for the company, you are asked the following questions. a. If your decision rule is to accept the project with the greater IRR, which project should you choose? b. Since 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? 14. Problems with Profitability Index The Bosa Corporation is trying to choose between the following two mutually exclusive design projects YEAR CASH FLOW (I) CASH FLOW (II) -$68,000 -$38,000