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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 -$50 $25 $20 $19 $14

B -$102 $19 $40 $52 $59

a. What are the IRRs of the two projects?

b. If your discount rate is , what are the NPVs of the two projects?

c. Why do IRR and NPV rank the two projects differently?

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