Compute npv for both projects for bahamas recreation corp

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Reference no: EM132958990

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 17 percent.

Year.            Deepwater Fishing.               New Submarine Ride.
0                 - $1,020,000                        - $1,990,000
1                    440,000                               1,040,000
2                    566,000                                 870,000
3                     490,000                                890,000

Problem 1: Compute the incremental IRR for the cash flows.

Problem 2: Compute the NPV for both projects

Reference no: EM132958990

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