Homework answers / question archive / Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC)

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC)

Finance

Share With

Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Both projects require an annual return of 15 percent.

(Year) Deepwater Fishing - New Submarine Ride (0) −$975,000 −$1,900,000 (1) - 395,000 - 950,000 (2) 530,000 - 825,000 (3) 445,000 - 800,000

How do you compute the IRR for both projects? 

How do you calculate the incremental IRR for the cash flows?

How do you compute the NPV for both projects?