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Project A B Year 0 - $52 - $99 Year 1 $25 $22 Year 2 $20 $39 Year 3 $21 $50 Year 4 $14 $59
Project A B Year 0 - $52 - $99 Year 1 $25 $22 Year 2 $20 $39 Year 3 $21 $50 Year 4 $14 $59 You are choosing between two projects. The cash flows for the projects are given in the following table ($ 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
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