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 Deepwater New Sub Ride
0 −$ 995,000 −$ 1,940,000
1 415,000 990,000
2 546,000 845,000
3 465,000 840,000
a-1. Compute the IRR for both projects. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
IRR Deepwater Fishing _____ % Submarine Ride _______ %
Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Incremental IRR _______%