Question: You are choosing between two projects. The cash flows for the projects are given in the following table (5 million) Project Year 0 Year 1
You are choosing between two projects. The cash flows for the projects are given in the following table (5 million) Project Year 0 Year 1 Year 2 A -$48 $25 $22 B S98 518 $39 Year 3 $18 $52 Year 4 $17 562 a. What are the IRRs of the two projects? 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
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