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quesiton 10 You are choosing between two projects. The cash flows for the projects are given in the following table ( $ million): a. What
quesiton 10
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 5.2%, 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 A is 6. (Round to one decimal place.) The IRR for project B is 6. (Round to one decimal place.) b. If your discount rate is 5.2%, what are the NPVs of the two projects? If your discount rate is 5.2%, the NPV for project A is $ million. (Round to two decimal places.) If your discount rate is 5.2%, 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, wh rankings when the initial investments are different. Data table (Click on the following icon in order to copy its contents into a spreadsheet.)Step by Step Solution
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