Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation...
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Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 18 percent. Deepwater Fishing Year 52,01 071,030,000 450,000 2 574,000 3 500,000 New Submarine Ride 2,010,000 1,060,000 880,000 910,000 1 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 % a-2. Based on the IRR, which project should you choose? Deepwater Fishing Submarine Ride b-1. 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 %
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