Question

   Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume...


  

Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 12 percent.

Year Dry Prepreg Solvent Prepreg
0 –$ 1,800,000 –$ 800,000
1 1,110,000 425,000
2 920,000 700,000
3 760,000 410,000

  

a.

What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)


   


b.

What is the NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)


   


c.

What is 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.)


   


d.

Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)


   

     



  

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