Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 9 percent.

Year Dry Prepreg Solvent Prepreg

0 –$ 1,820,000 –$ 810,000

1 1,112,000 435,000

2 924,000 720,000

3 762,000 414,000

a. What is the payback period for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places, e. g., 32.16.)

Payback period

Dry Prepeg years

Solvent Prepeg years

b. What is the NPV for both projects? (Do not round intermediate calculations. Round your answers to 2 decimal places, e. g., 32.16.)

NPV

Dry Prepeg $

Solvent Prepeg $

c. What is the IRR for both projects? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

IRR Dry Prepeg %

Solvent Prepeg %

d. Calculate the incremental IRR for the cash flows. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Incremental IRR %