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Project A B Year 0 - $52 - $100 Year 1 $24 $20 Year 2 $20 $40 Year 3 $21 $50 Year 4 $16 $61

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Project A B Year 0 - $52 - $100 Year 1 $24 $20 Year 2 $20 $40 Year 3 $21 $50 Year 4 $16 $61 a. What are the IRRs of the two projects? b. If your discount rate is 5.5%, 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 5.5%, what are the NPVs of the two projects? If your discount rate is 5.5%, the NPV for project A is $ million. (Round to two decimal places.) If your discount rate is 5.5%, the NPV for project B is $ 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 Inveetmant the han masenroe mow he different ranvinne when the initial invoetmante are different

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