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

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Finance

You are choosing between two projects. The cash flows for theprojects are given in the following table? ($ million): ProjectYear 0 Year 1 Year 2 Year 3 Year 4 A negative $ 51 $ 23 $ 22 $ 20 $16 B negative $ 100 $ 20 $ 39 $ 48 $ 60 a. What are the IRRs of thetwo? projects? b. If your discount rate is 5.2 %?, what are theNPVs of the two? projects? c. Why do IRR and NPV rank the twoprojects? differently? a. What are the IRRs of the two? projects??(Round to one decimal? place.)

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4.4 Ratings (818 Votes)
The cash flows for project AYear 051Year 123Year 222Year 320Year 416The cash flows for project BYear 0100Year 120Year 239Year 348Year 460Given that the discount    See Answer
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You are choosing between two projects. The cash flows for theprojects are given in the following table? ($ million): ProjectYear 0 Year 1 Year 2 Year 3 Year 4 A negative $ 51 $ 23 $ 22 $ 20 $16 B negative $ 100 $ 20 $ 39 $ 48 $ 60 a. What are the IRRs of thetwo? projects? b. If your discount rate is 5.2 %?, what are theNPVs of the two? projects? c. Why do IRR and NPV rank the twoprojects? differently? a. What are the IRRs of the two? projects??(Round to one decimal? place.)

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