Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year o Year 1

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year o Year 1 Year 2 Year 3 Year 4 A - $48 $24 $20 $22 $16 B - $102 $21 $42 $52 $60 a. What are the IRRs of the two projects? b. If your discount rate is 5.4%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
