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Listen You have just started your summer internship, and your boss asks you to review a recent analysis that was done to compare two alternative

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Listen You have just started your summer internship, and your boss asks you to review a recent analysis that was done to compare two alternative proposals to enhance the firm's manufacturing facility. You find that the prior analysis ranked the proposals according to their IRR, and recommended the highest IRR option, Proposal A. You are concerned and decide to redo the analysis using NPV to determine whether this recommendation was appropriate. But while you are confident the IRRs were computed correctly, it seems that some of the underlying data regarding the cash flows that were estimated for each proposal was not included in the report. For Proposal B. you cannot find information regarding the total initial investment that was required in year 0. Here is the information you have (all amounts are in million $): ProposallRR Year 0 Year 1 Year 2 Year 3 A 60% -100 30 153 112.47 B 45% ?? 0 295 117

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