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Part $1$

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 $3$

Year $4$

A

negative $ $48$

$ $23$

$ $21$

$ $18$

$ $13$

B

negative $ $102$

$ $20$

$ $38$

$ $51$

$ $60$

a$.$ What are the IRRs of the two$$ projects?

b$.$ If your discount rate is $5\mathrm{.}2\%,$ what are the NPVs of the two$$ projects?

c$.$ Why do IRR and NPV rank the two projects$$ differently?

Question content area bottom

Part $1$

a$.$ What are the IRRs of the two$$ projects?

The IRR for project A is

$$

enter your response here$\%.($Round to one decimal$$ place.$)$