Question

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 0 Deepwater Fishing -5995,000 415.000 546,000 465.000 New Submarine Ride -$1,940,000 990,000 845 000 840,000 a.1. Compute the IRR for both projects. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, ... 32.16.) IRR Deepwater Fishing Submarine Ride 19.94 % 18.57% a-2. Based on the IRR which project should you choose? Submarine Ride Deepwater Fishing b-1. Calculate the incremental IRR for the cash flows. Do not round intermediate calculations. Enter your answers a percent rounded in 2 decimal placOS 2.0.32.16.) Incremental IRR 16 93% b-2. Based on the incremental IRR which project should you choose? Deepwater Fishing Submarine Ride c.1. Compute the NPV for both projects. Do not found intermediate calculations. Round your answers to 2 decimal places a 32.167 NPV Deepwater Fishing Submarine Ride c.2. Based on the NPV which project should you choose? Submarine Ride Deepwater Fishing the NPV on content with incrementa RR

need the NPV for both projects

Answer 1

NPV of the projects are as follows

36 Deepward fishing New submarine -$995,000.00 -$1,940,000.00 Year 37 38 $415,000.00 $990,000.00 39 $546,000.00 $845,000.00 40 $465,000.00 $840,000.00 41 42 $66,431.38 $79,573.37 NPV 43 44

Formulas used :-

B43=(NPV(0.16,B39:B41))+B38

C43=(NPV(0.16,C39:C41))+C38

i hope my efforts will be fruitful to you..?