Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 - $50

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 - $50 - $101 Year 1 $27 Year 2 $19 $42 Year 3 $22 Year 4 $16 $58 $19 $51 a. What are the IRRs of the two projects? b. If your discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
