Question: Ch8 Q4 Show work please You are choosing between two projects. The cash flows for the projects are given in the following table ($ million);
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million); Project Year 0 Year 1 Year 2 Year 3 - $49 $27 $19 $22 B - $100 $19 $39 $51 Year 4 $16 $61 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
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
