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

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	Year 3	Year 4
A	$49	$24	$22	$19	$17
B	$101	$20	$41	$52	$62

a. What are the IRRs of the two projects?

b. If your discount rate is

5.3%,

what are the

NPVs

of the two projects?

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

Homework: H08 Save Score: 0 of 1 pt 3 of 5 (1 complete) HW Score: 20%, 1 of 5 pts P 8-28 (similar to) Question Help You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Year 2 Project A B Year 0 - $49 - $101 Year 1 $24 $20 $22 Year 3 $19 $52 Year 4 $17 $62 $41 a. What are the IRRs of the two projects? b. If your discount rate is 5.3%, 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 Ais %. (Round to one decimal place.)

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