a$.$ Determine the two missing data amounts.

b$.$ Suppose the appropriate cost of capital for each alternative is $10\%.$ Using this information, determine the NPV of each proposal. Which project should the firm choose?

c$.$ Why is ranking the projects by their IRR not valid in this situation?

a$.$ Determine the two missing data amounts $($$millions$).$

b$.$ Suppose the appropriate cost of capital for each alternative is $10\%.$ Using this information, determine the NPV of each proposal.

The NPV for proposal A is $$$ million.

$($Do not round until the final answer. Then, round to two decimal places.$)$

The NPV for proposal B is $$$ million.

$($Do not round until the final answer. Then, round to two decimal places.$)$

The NPV for proposal $C$ is $$$ million.

$($Do not round until the final answer. Then, round to two decimal places.$)$

Which project should the firm choose?

The firm should choose project $A.$

The firm should choose project $B.$

The firm should choose project $C.$

All three projects have the same value.

c$.$ Why is ranking the projects by their IRR not valid in this situation?

A$.$ The projects have different scales and different patterns of cash flows over time.

B$.$ The projects have a total number of years.

C$.$ All the IRR values were calculated using different interest rates.

D$.$ All the IRR values are positive, which represents a loss in value.