CH8Q10

Round to 4 decimal places if necessary.

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 - $50 - $102 Year 1 $23 $20 Year 2 $21 $38 Year 3 $22 $51 Year 4 $12 $62 a. What are the IRRs of the two projects? b. If your discount rate is 5.5%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently