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 is4.8%, 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 26 21 18 16
B -101 21 41 52 59
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
