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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 - $52 $25 $22 $20 $13 B -$102 $22 $41 $50 $61 a. What are the IRRs of the two projects? b. If your discount rate is 4.9%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? a. What are the IRRs of the two projects? The IRR for project Ais % (Round to one decimal place.) The IRR for project is % (Round to one decimal place.) b. If your discount rate is 4.9%, what are the NPVs of the two projects? If your discount rate is 4.9%, the NPV for project Als $ million (Round to two decimal places.) If your discount rate is 4.9%, the NPV for project Bis $ million (Round to two decimal places.) c. Why do IRR and NPV rank the two projects differently? (Select from the drop-down menus.) NPV and IRR rank the two projects differently because they are measuring different things is measuring value creation, while 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 h You are considering opening a new plant. The plant will cost $99.7 million up front and will take one year to build. After that it is expected to produce profits of $31.3 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 7.7%. Should you make the investment? Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged. Ab DEECE You The NPV of the project will be smilion: (Round to one decimal place.) make the investment. (Select from the drop-down menu.) The IRR is % (Round to two decimal places.) The maximum deviation allowable in the cost of capital estimate is % (Round to two decimal places.)