Question: Ch8 Q4 Show work please You are choosing between two projects. The cash flows for the projects are given in the following table (S million)
You are choosing between two projects. The cash flows for the projects are given in the following table (S million) Project Year 0 Year 1 Year 2 A - $50 $25 $18 B $100 $18 $40 a. What are the IRRs of the two projects? b. If your discount rate is 4.6%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? Year 3 $20 $52 Year 4 $15 $60
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