You are choosing between two projects but can only take one


You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:

0 1 2 3 4

A -$50 25 20 20 15

B -$100 20 40 50 60

a. What are the IRRs of the two projects?

b. If your discount rate is 5%, what are the NPVs of the two projects?

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

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Basic Computer Science: You are choosing between two projects but can only take one
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