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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 -$51 - $99 a. What are the IRRS of the two projects? Year 1 $25 $18 b. If your discount rate is 4.7%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? Year 2 $21 $41 Year 3 Year 4 $19 $13 $48 $62
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