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

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

You are choosing between two projects. The cash flows for the projects

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?

Project A B Year 0 - $50 - $100 Year 1 $25 $20 Year 2 $20 $40 Year 3 $20 $50 Year 4 $15 $60

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