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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 -$51 - $101 a. What are the IRRS of the two projects? Year 1 $26 $22 Year 2 $22 $40 b. If your discount rate is 4.8%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? Year 3 $22 $51 Year 4 $13 $58
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Calculus
Authors: Ron Larson, Bruce H. Edwards
10th Edition
1285057090, 978-1285057095
