You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):

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.

a. What are the IRRs of the two projects?

The IRR for project A is

(Round to one decimal place.)

The IRR for project B is

(Round to one decimal place.)

Part 2

b. If your discount rate is

5.4%,

what are the

NPVs

of the two projects?

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

Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Year 2 Year 3 Project A Year - $48 $23 $18 $21 B - $100 $20 $41 $52 Done Print Year 4 $12 $59 X