Question
You are choosing between two projects. The cash flows for the projects are given in the following table? ($ million): Project Year 0 Year 1
You are choosing between two projects. The cash flows for the projects are given in the following table? ($ million):
| Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
| A | -$52 | $ 26 | $ 21 | $20 | $17 |
| B | -$101 | $ 21 | $ 38 | $48 | $61 |
a. What are the IRRs of the two? projects? IRR for project A is _ ?IRR for project B is _
b. If your discount rate is 5.1 % what are the NPVs of the two? projects?npv for project A is _,npv for project B is _
c. Why do IRR and NPV rank the two projects? differently? and explain how
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Financial Adulting Everything You Need To Be A Financially Confident And Conscious Adult
Authors: Ashley Feinstein Gerstley
1st Edition
1119817307, 9781119817307
