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 projects are given in the following table ($ million): Project

Year 0 Year 1 Year 2 Year 3 Year 4

A: - $49 $23 $19 $22 $17

B: - $102 $20 $40 $48 $60

a. What are the IRRs of the two projects?

- The IRR for project A is ?

- The IRR for project B is ?

b. If your discount rate is 5.5 %, what are the NPVs of the two projects?

- If your discount rate is 5.5 %, the NPV for project A is ?

- If your discount rate is 5.5 %, the NPV for project B is ?

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