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Please answer Ill leave good rating Question Help You are choosing between two projects. The cash flows for the projects are given in the following
Please answer Ill leave good rating
Question Help You are choosing between two projects. The cash flows for the projects are given in the following table ($ million) Project Year 0 Year 1 A -$48 $26 B $101 520 Year 2 522 541 Year 3 $19 Year 4 515 $58 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? The IRR for project Ais % (Round to one decimal place) The IRR for project B is % (Round to one decimal place) b. If your discount rate is 49%, what are the NPVs of the two projects? If your discount rate is 4.9%, the NPV for project Ais 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) is measuring return on investment Because returns do not scale with different levels of NPV and IRR rank the two projects differently because they are measuring different things is measuring value creation, while investment, the two measures may give different rankings when the initial investments are different
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