Question
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Year 0 Year 1 Year2
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):
| Year 0 | Year 1 | Year2 | Year 3 | Year 4 |
| -51 | 27 | 22 | 18 | 13 |
| -100 | 20 | 39 | 49 | 58 |
a. What are the IRRs of the two projects?
b. If your discount rate is 4.6%, what are the NPVs of the two projects?
c. Why do IRR and NPV rank the two projects differently?
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Handbook Of Research On Theory And Practice Of Financial Crimes
Authors: Abdul Rafay
1st Edition
1799855678, 978-1799855675
