Question
You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table: 0 1
You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:
0 1 2 3 4
A -$50 25 20 20 15
B -$100 20 40 50 60
a.What are the IRRs of the two projects?
b.If your discount rate is 5%, what are the NPVs of the two projects?
c.Why do IRR and NPV rank the two projects differently?
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
