Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): LOADING... . a. What are

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):

LOADING...

.

a. What are the IRRs of the two projects?

b. If your discount rate is 4.7% what are the NPV of the two projects?

c. Why do IRR and NPV rank the two projects differently?

Data table

(Click on the following icon

Click in order to copy its contents into a spreadsheet.)

Project

Year 0

Year 1

Year 2

Year 3

Year 4

A

$52

$26

$22

$19

$15

B

$98

$21

$39

$51

 $62

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