Question: Please help with this problem as I am having a difficult time solving. Thanks You are choosing between two projects. The cash flows for the
Please help with this problem as I am having a difficult time solving.
Thanks
You are choosing between two projects. The cash flows for the projects are given in the following table (5 million): Project A B Year 0 - $48 - $100 Year 1 $23 $18 Year 2 S19 $42 Year 3 $20 $52 Year 4 S17 S58 a. What are the IRRs of the two projects? b. If your discount rate is 4.7%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRs of the two projects? The IRR for project Ais %. (Round to one decimal place.)
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