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: 3

5) You are choosing between two projects, but can only take

5) You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: 3 4 0 -50 -100 L 1 25 20 2 20 40 B 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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