Question
You are choosing between two projects. The cash flows for the projects are given in the following table (millions) Project B Year 0 $52
You are choosing between two projects. The cash flows for the projects are given in the following table (millions) Project B Year 0 $52 $97 Year 1 $28 $21 a. What are the IRRS of the two projects? b. If your discount rate is 5.7%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? CLLED Year 2 $19 $43 Year 3 Year 4 $23 $18 $53 $63 X
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Investments An Introduction
Authors: Herbert B. Mayo
12th edition
1305638417, 978-1337430937, 1337430935, 978-1305638419
