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 - $50 $27 $22 $101 $21 $38 a. What are the IRRs of the two projects? b. If your discount rate is 5.2%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? Year 3 $21 $51 Year 4 $14 $58 a. What are the IRRs of the two projects? The IRR for project Als % (Round to one decimal place.)
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