Question: You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: a. What

You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:

a. What are the IRRs of the two projects?
b. If your discount rate is 5%, what are the NPVs of the two projects?
c. Why do IRR and NPV rank the two projects differently?

A $50 25 B $ 20 20 15 100 20 40

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a IRR of Investment A 24 IRR of Investment B 21 b NPV of Investment A at 5 2157 NPV o... View full answer

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