Calculate the incremental IRR for the cash flows

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Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 7 percent.

Year                    Dry Prepreg                   Solvent Prepreg.

0.                     -$1,870,000                   -$835,000

1                         1,117,000                     460,000

2                           934,000                         770,000

3                                 767,000                   424,000

Question A. What is the payback period for both projects?

Question b. What is the NPV for both projects?

Question c. What is the IRR for both projects?

Question d. Calculate the incremental IRR for the cash flows.

Reference no: EM132478695

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