Question

You are choosing between two projects. The cash flows for the projects are given in the...

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

negative $ −$52

$26

$ $21

$22

$17

B

negative $−$102

$22

$42

$49

$58

a. What are the IRRs of the two​ projects?

b. If your discount rate is

5.3 %5.3%​,

what are the

NPVs

of the two​ projects?

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

a. What are the IRRs of the two​ projects?

The IRR for project A is

nothing​%.

​(Round to one decimal​ place.)

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