Question: 5) You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: 0

5) You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:

0

1

2

3

4

A

-50

25

20

20

15

B

-100

20

40

50

60

a. What are the IRRs of the two projects? Use an excel spread sheet

b. If your discount rate is 5%, what are the NPVs of the two projects?

c. Why do IRR and NPV rank the two projects differently?

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