You are choosing between two projects. The cash flows for the project are given in the following
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Question:
You are choosing between two projects. The cash flows for the project are given in the following table ($ million) :
Project Year 0 Year 1 Year 2 Year 3 Year 4
A -$52 $26 $18 $19 $17
B -$102 $19 $40 $48 $61
A. What are the IRRS of the two projects?
B. If your discount rate is 4.7%, what are the NPV of the two project's?
C. Why do IRR and NPV rank the two projects differently?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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