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Please answer the following questions quickly, showing all work accordingly on all sections. Thank you. Part A. IRR of A 25.34% IRR of B 19.18%
Please answer the following questions quickly, showing all work accordingly on all sections. Thank you.
Part A.
IRR of A 25.34%
IRR of B 19.18%
Part B.
NPV of A is NOT 24.72. What is the correct answer?
NPV of B is NOT 44.04. What is the correct answer?
Part C.
Why do IRR and NPV rank the two project differently?
\begin{tabular}{cccccc} Project & Year 0 & Year 1 & Year 2 & Year 3 & Year 4 \\ \hline A & $52 & $26 & $22 & $22 & $15 \\ B & $101 & $19 & $39 & $48 & $59 \\ \hline \end{tabular} You are choosing between two projects. The cash flows for the projects are given in the following table ( $ million): a. What are the IRRs of the two projects? b. If your discount rate is 4.7%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently
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