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Project Year 0 Year 1 Year 2 Year 3 Year 4 A -52 27 22 21 17 B -101 20 40 50 59 a. What

Project Year 0 Year 1 Year 2 Year 3 Year 4 A -52 27 22 21 17 B -101 20 40 50 59

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?

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