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. 
Year  Deepwater Fishing  New Submarine Ride  
0  −$  1,030,000  −$  2,010,000  
1  450,000  1,060,000  
2  574,000  880,000  
3  500,000  910,000  
Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) 
c2. 
Based on the NPV, which project should you choose? 

c3.  Is the NPV decision consistent with the incremental IRR rule? 

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