Question: You are choosing between two projects. The cash flows for the project are given in the following table ($ million) : Project Year 0 Year

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

Project Year 0 Year 1 Year 2 Year 3 Year 4

A -$52 $26 $18 $19 $17

B -$102 $19 $40 $48 $61

A. What are the IRRS of the two projects?

B. If your discount rate is 4.7%, what are the NPV of the two project's?

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

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