Question
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): a. What are the IRRs
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million):
a. What are the IRRs of the two projects?
b. If your discount rate is 5.5%, what are the NPVs of the two projects?
c. Why do IRR and NPV rank the two projects differently?
| Project | Year 0 | Year 1 | Year 2 | Year 3 | Year 4 |
| A | $52 | $23 | $22 | $18 | $17 |
| B | $102 | $19 | $42 | $52 |
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The Infographic Guide To Personal Finance
Authors: Michele Cagan CPA, Elisabeth Lariviere
1st Edition
1507204663, 978-1507204665
