Reference no: EM131829356

Consider two mutually exclusive R&D project that Savage Tech is considering. Assume the discount rate for both projects is 13 percent. Project A: Year 0.) -745,000 Year 1.) $348,000 Year 2.) $367,000 Year 3.) $259,000 Year 4.) $184,000 Year 5.) $128,000 Project B: Year 0.) $-954,000 Year 1.) $263,000 Year 2.) $372,000 Year 3.) $368,000 Year 4.) $422,000 Year 5.) 507,000

Question 1: What is the IRR for Project A and Project B? Enter IRR as a percent. Round to 2 decimal places.

Question 2: What is the incremental IRR of investing in the larger project? Enter as a percent and round to 2 decimal places.