Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ milion) Project Year 0 -$52 Year
You are choosing between two projects. The cash flows for the projects are given in the following table ($ milion) Project Year 0 -$52 Year 1 $26 $16 -$100 a. What are the IRRs of the two projects? b. If your discount rate is 5.3%, what are the NPVs of the bwo 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 Ais (Round to one decimal place) The IRR for project is (Round to one decimal place) b. If your dacount rate is 5.3%, what are the NPVS of the two project? If your discount rate is 5.3%, the NPV for project A is million (Hound to two decimal places) If your discount rate is 5.3%, the NPV for project is million (Round to two decimal places) Why do IRR and NPV rark the two projects diferently? (Select from the drop-down menus) NPV and IRR rank the two projects differently because they are measuring different things different levels of investment, the two measures may give different rankings when the initial investments are different Year 2 $21 is measuring value creation, while Year 3 Year 4 $17 $18 $50 $59 is measuring return on investment Because retums do not scale with
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