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 theprojects are given in the following table (\$ million): a. What are

You are choosing between two projects. The cash flows for the projects are given in the following table (\$ million): a. What are the IRRs of the two projects? b. If your discount rate is 4.8%, 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.) The IRR for project B is %. (Round to one decimal place.) b. If your discount rate is 4.8%, what are the NPVs of the two projects? If your discount rate is 4.8%, the NPV for project A is $ million. (Round to two decimal places.) If vour discount rate is 4.8%, the NPV for proiect B is $ million. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Your boss hands you the following information about two mutually exclusive projects. She adds the following: "Our discount rate is 10% and both projects have IRRs over 20%. Unfortunately, we are unable to implement both, so we will go with project A since it has the highest IRR of the two." How would you respond? Give a supporting numerical analysis. Ranking the projects by IRR would lead to decision because the NPV of project A is $ and the NPV of project B is $ This means that project has the higher NPV, which results in projects being selected by the NPV and IRR rules. (Round to the nearest dollar as needed.)

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