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 $23 B $98 $21 - $49 Year 2 $20 $38 Year 3 $21 $52 Year 4 $12 $60 a. What are the IRRs of the two projects? b. If your discount rate is 5.2%, 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
