Question
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million) a. What are the IRRs
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million)
a. What are the IRRs of the two projects?
b. If your discount rate is
5.4%,
what are the
NPVs
of the two projects?
c. Why do IRR and NPV rank the two projects differently?
| Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
| A | $49 | $23 | $19 | $19 | $15 |
| B | $102 | $18 | $41 | $52 | $61 |
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Financial Sustainability In Public Administration Exploring The Concept Of Financial Health
Authors: Manuel Pedro Rodríguez Bolívar
1st Edition
3319579614, 3319579622, 9783319579610, 9783319579627
