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 -$49 $27 $19 $22 $15

B -$98 $21 $39 $52 $59

a. What are the IRRs of the two projects?

The IRR for project A is ?(Round to one decimal place.)

The IRR for project B is?(Round to one decimal place.)

b. If your discount rate is 5.1 % what are the NPVs of the two projects?

If your discount rate is 5.1 % the NPV for project A is? Million (Round to two decimal places.)

If your discount rate is 5.1 % the NPV for project B is?Million (Round to two decimal places.)

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