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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

24

18

18

17

B

-$99

21

39

50

58

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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