10) You are choosing between two projects The cash flows for the projects are given in the following table ($ million) Project Year 0 Year 1 Year 2 Year 3 Year 4 A $49 $24 $21 $22 $12 B $98 $20 $39 $51 $61 a What are the IRRs of the two projects (Round to 2 decimal place) b If your discount rate is 4 9 , what are the NPVs of the two projects (Round to 2 decimal place) c Why do IRR and NPV rank the two projects differently

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Question: 10) You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year

10) You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):

Project	Year 0	Year 1	Year 2	Year 3	Year 4
A	-$49	$24	$21	$22	$12
B	-$98	$20	$39	$51	$61

a. What are the IRRs of the two projects? (Round to 2 decimal place) b. If your discount rate is 4.9%, what are the NPVs of the two projects? (Round to 2 decimal place) c. Why do IRR and NPV rank the two projects differently?

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