Why might the projects have different discount rates which


Multiple IRRs. Consider the following cash flows. C0 C1 C2 C3 C4 -$22 $20 $20 $20 -$40 A.) Which two of the following rates are the IRRs of this project: 2.5%, 7.2%, 14.3%, 33.7%, 40.0%? B.) What is the project NPV if the disount rate is 5%? C.) What if is is 20%? D.) What if is is 40%? E.) Why might the projects have different discount rates? F.) Which projects should the manager choose? G.) Which projects should the manager choose if there is no capital rationing?

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Financial Management: Why might the projects have different discount rates which
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