Question: You are choosing between two projects. The cash flows for the projects are given in the following table (S million): Year 4 Year 0 -$51
You are choosing between two projects. The cash flows for the projects are given in the following table (S million): Year 4 Year 0 -$51 -$102 Year 1 $26 $20 Year 2 $22 $40 Year 3 $20 $49 Project $61 a. What are the IRRs of the two projects? b. If your discount rate is 4.9%, 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%. (Round to one decimal place.)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
