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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 Year 1 Year 2 Year 3 Year 4 $24 $21 $20 $13 $21 $40 $51 $59 - $49 - $99 a. What are the IRRS of the two projects? b. If your discount rate is 4.5%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently?
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
10th Edition
538482109, 1133711774, 538482389, 9780538482103, 9781133711773, 978-0538482387
