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

a. What are the IRRs of the two projects?

The IRR for project A is ______%. (Round to one decimal place.)

The IRR for project B is ______%. (Round to one decimal place.)

b. If your discount rate is 4.8 %, what are the NPVs of the two projects?

If your discount rate is 4.8%, the NPV for project A is $_______.

If your discount rate is 4.8%, the NPV for project B is $_______.

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

Project A B Year 0 - $50 - $99 Year 1 $27 $20 Year 2 $22 $39 Year 3 $19 $52 Year 4 $13 $59