Question

ONLY NEED ANSWER TO C 1/ I know the answer to the other questions

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 Fishing			New Submarine 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 and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

deepwater - 19.94%

submarine ride - 18.57%

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.)

      Incremental IRR - 16.93%

c1.	Compute the NPV for both projects. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Deepwater fishing -

Submarine ride -

Answer 1