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

You are choosing between two projects. The cash flows for the projects are given in the following table (s millon) a. What are the IRRs of the two projects? b. If your discount rate is 5.0%, 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 IRR for project A is 1/. (Round to one decimal place.) The IRR for project 8 is 36 . (Round to one decimat place.) b. If your disccunt rate is 5.0%, what are the NPVs of the two projects? If your discount rate is 5.0%, the NPV for project A is $ million. (Round to two decimal places) If your discount rate is 5.0%, the NPV for project B is $ millon. (Round to two decimal places.) c. Why do IRR and NPV rank the two projects ditlerently? (Select from the drop-down menus.) NPV and IRR rank the two projects differenty because they are measuring different things. is measuring value creation, while is measuring retum on investrent. Because retums do not scale with different levels of investment, the two meosures may give different rankings when the initial investments are ditlerent. mat ard wie irvrs or the two projects? your discount rate is 5.0%, what are the NPVs of the two projects? hhy do IRR and NPV rank the two projects differently? Data table (Click on the following icon p. in order to copy its contents into a spreadsheet.)
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