A nbspwhat are the irrs of the two projects b nbspif your


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                           -$48              $24             $20               $21                  $15

B                          -$101             $20             $40               $51                  $60

A.  What are the IRRs of the two projects?

B.  If your discount rate is 5.1%, what are the NPV's of the two projects?

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

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