Question: You are choosing between two projects. The cash flows for the projects are given in the following table ($ million) Year 0 $48 $99 Year

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million) Year 0 $48 $99 Year 1 $26 $20 Year 2 $18 $41 Year 3 $18 $49 Year 4 $13 $59 Project a. What are the IRRs of the two projects? b. If your discount rate is 4.9%, 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
