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You are choosing between two projects. The cash flows for the project are given in the following table ($ million) : Project Year 0 Year

You are choosing between two projects. The cash flows for the project are given in the following table ($ million) :

Project Year 0 Year 1 Year 2 Year 3 Year 4

A -$52 $27 $19 $20 $17

B -$99 $18 $39 $48 $58

a. What are the IRRs of the two projects?

b. If your discount rate is 5.2 % what are the NPVs of the two projects?

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

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