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

You are choosing between two projects. The cash flows for the projects are given in the following table (\$ million): a. What are the IRRs of the two projects? b. N your discount rate is 48%. 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 IPR for project A is % (Round to one decimal place) The IRR for project B is \% (Round to one decimal place.) b. Hyour discount rate is 48%, what are the NPVs of the two projects? If your discount rate is 4.8%, the NPV for projuct A is $ million. (Round to two decimal places) If your discount rate is 4.8%, the NPV for project B is $ million (Round to two decimal places.) c. Why do IRR and NPV rank the two projects differently? (Select from the drop-down meous) NPV and IRR rank the two projects diflerently because they are measuring difforent things is measuring value creation, while is measuring return on imestment. Because returns do not scale with different levels of investment, the two measures may gme different rankings when the initial irvestments are different If your discount rate is 4.8%, the NPV for project A is $ million. (Round to two decimal places.) If your discount rate is 4.8%, the NPV for project B is $ million. (Round to two decimal places.) c. Why do IRR and NPV rank the two projects differently? (Select from the drop-down menus.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
