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


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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A B $48 - $99 $23 $22 $20 $15 $20 $40 $50 $60 a. What are the IRRS of the two projects? b. If your discount rate is 4.7%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently?

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