Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4

A -$52 $27 $19 $19 $17

B -$102 $18 $41 $48 $59 a. If your discount rate is 5.2% , what are the NPVs of the two projects? b. Why do IRR and NPV rank the two projects differently?

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