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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 Year o -
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A Year o - $49 - $100 Year 1 $27 $21 Year 2 $22 $41 Year 3 $22 $50 Year 4 $17 $62 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
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