Question: Course You are choosing between two projects. The cash flows for the projects are given in the following table (S million) Feb 1 201 Year
Course You are choosing between two projects. The cash flows for the projects are given in the following table (S million) Feb 1 201 Year 1 $27 $19 Year 2 $19 $38 Year 3 $21 $50 Year 4 $17 $61 Project Year 0 -$50 -$101 a. What are the IRRs of the two projects? b.lfyour discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differenty? Study a. What are the IRRs of the two projects? Moduler The IRR for project A(Round to one deimal place.) Multime The RR for project B is %. Financi b. Ifyour discount rate is 4.8%, what are te NPVs of the two propects? (Round to one decimal place.) if your discount rate is 48%, te NPV for project Aissmlin. (Rond tho decimal places.) If your dsount rate is 4 8%, ee NPV for project B is s," ]milon. (Round to two decirnal places.) e. Why do IRR and NPV rank the two projects differently? (Select from the drop-down menus.) NPV and RR rank the two projects defererey because they are measuring dnerent things : measuring value geation, while! is measuring retum on nvestment. Because retuns do not scale with different levels of investment, the two measures may give different rankings when the inibal investments are iferent
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