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The following table shows the forecast cash flows for two projects: Now suppose that the term structure is upward sloping and investors demand a higher
The following table shows the forecast cash flows for two projects: Now suppose that the term structure is upward sloping and investors demand a higher return on the more distant flows as in the following table: a-1. Calculate the IRR on the two projects. a-2. Calculate the NPV on the two projects. a-3. Do the two measures give the same ranking for the two projects? Complete this question by entering your answers in the tabs below. Calculate the IRR on the two projects. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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