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please help with the problems A-C thank you (similar to) You are choosing between two projects. The cash flows for the projects are given in
please help with the problems A-C thank you
(similar to) 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 5.4%, 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.) Che two projects? 5.4%, what are the NPVs of the two projects? ven in the following table ($ million). E i Data Table -X (Click on the following icon in order to copy its contents into a spreadsheet.) Project Year 0 - $50 $102 Year 1 $26 $21 Year 2 $20 $38 Year 3 $19 $49 Year 4 $14 $61 B Print Done answer box and then click Check Answer. The IRR for project Ais 24.5%. (Round to one decimal place) The IRR for project Bis 212% (Round to one decimal place.) b. If your discount rate is 4.7%, what are the NPVs of the two projects? If your discount rate is 4.7%, the NPV for project Ais $ 22.86 million (Round to two decimal places.) If your discount rate is 47%, the NPV for project Bis $ 40.14 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. NPV is measuring value creation, while NPV 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 Click to select your answer(s) and then click Check Step by Step Solution
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