Question: You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: 0 1

You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:

0 1 2 3 4

A -$50 25 20 20 15

B -$100 20 40 50 60

a.What are the IRRs of the two projects?

b.If your discount rate is 5%, what are the NPVs of the two projects?

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

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