You are choosing between two projects. The cash flows for the projects are given in the following table $($$ million$)$: $$7.$

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

b$.$ If your discount rate is $4\mathrm{.}5\%,$ what are the NPV $8$ 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 IRR for project $A$ is $\%.($Round to one decimal place.$)$

The IRR for project B is $\%.($Round to one decimal place.$)$

b$.$ If your discount rate is $4\mathrm{.}5\%,$ what are the NPVs of the two projects?

If your discount rate is $4\mathrm{.}5\%,$ the NPV for project $A$ is $$||||$ million. $($Round to two decimal places.$)$

If your discount rate is $4\mathrm{.}5\%,$ 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.$)$ not scale with different levels of investment, the two measures may give different rankings when the initial investments are different.