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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B Year 0 -$48 $100. Year 1 $23 $20 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? Year 2 $21 $40 Year 3 Year 4 $22 $16 $52 $61
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
