Question: ans b & c please You are choosing between two projects. The cash flows for the projects are given in the following table ( 5

You are choosing between two projects. The cash flows for the projects are given in the following table ( 5 million). a. What are the IRRes of the two projects? b. If your discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projocts diflerently? a. What are the IRRs of the two projects? The IRR for project A is 6. (Round to one decimal place) The IRR for project B is 6. (Round to one decimal place) b. If your discount rate is 4.8%, what ate the NPVs of the two projects? If your discount rate is 4.8%, the NPV for project A is 5 million. (Round to two decimal places.) If your discount rate is 48%, the NPV for project B is ? million. (Round to two docinal places.) c. Why do IRR and NPV rank the two projects differently? (Select from the drop-down menus) NPV and IPR tank the two projects differently bocause they are measuring diferent things: is measuring value creation, while imestment. Because returns do not scale with dfferent levels of investment, the two measures may give different rankings whien the initiol is measuring return on Data table (Click on the following icon D in order to copy its contents into a spreadsheet.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
