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Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount...

Consider two mutually exclusive new product launch projects that Nagano Golf is considering. Assume the discount rate for both projects is 12 percent.
Project A: Nagano NP-30.
Professional clubs that will take an initial investment of $990,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.
Project B: Nagano NX-20.
High-end amateur clubs that will take an initial investment of $727,000 at Time 0. Introduction of new product at Year 6 will terminate further cash flows from this project.
Year NP-30 NX-20
0 –$ 990,000 –$ 727,000
1 353,000 270,000
2 343,000 283,000
3 318,000 268,000
4 317,000 252,000
5 227,000 194,000
Complete the following table: (Do not round intermediate calculations. Enter the IRR as a percent. Round your profitability index (PI) answers to 3 decimal places, e.g., 32.161, and other answers to 2 decimal places, e.g., 32.16.)
NP-30 NX-20
NPV $ $
IRR % %
PI
What is the incremental IRR of investing in the larger project? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Incremental IRR %

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