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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year

You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 - $49 - $99 a. What are the IRRS of the two projects? Year 1 $25 $22 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? Year 2 $19 $39 Year 3 $18 $50 Year 4 $14 $58

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