Question: You are choosing between two projects. The cash ows for the projects are given in the following table ($ million) a. What are the lRRs

You are choosing between two projects. The cash ows for the projects are given in the following table ($ million) a. What are the lRRs of the two projects? b. If your discount rate is 4.6%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the lRRs of the two projects? The IRR for projectA is %. (Round to one decimal place.) The IRR for project B is %. (Round to one decimal place.) b. If your discount rate is 4.6%, what are the NPVs of the two projects? If your discount rate is 4.6%, the NPV for projectA is $ million. (Round to two decimal p aces.) If your discount rate is 4.6%, the NPV for project B is $ million. (Round to two decimal p aces.) c. Why do IRR and NPV rank the two projects different y? (Select from the dropdown menus.) NPV and IRR rank the two projects differently because they are measuring different things. V is measuring value creation, while V is measuring return on investment. Because returns do not scale with different levels of investment, the two measures may give different rankings when the initial investments are different. \f

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