Consider the following cash flows of two mutually exclusive projects for Tokyo Rubber Company. Assume the discount rate for both projects is 8 percent.
Year Dry Prepreg Solvent Prepreg
0 -$ 1,800,000 -$ 715,000
1 1,080,000 380,000
2 840,000 627,000
3 870,000 396,000
a. What is the payback period for both projects? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Dry Prepeg years
Solvent Prepeg years
b. What is the NPV for both projects? (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
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.)
Dry Prepep %
Solvent Prepeg %