You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): a. What are the IRRs of the two projects? b. If your discount rate is 4.6%, What are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? **round to one decimal place**

Intermediate Financial Management (MindTap Course List)
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Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
Problem 21P: Your division is considering two investment projects, each of which requires an up-front expenditure...
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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): a. What are the IRRs of the two projects? b. If your discount rate is 4.6%, What are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently? **round to one decimal place**
You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): E
a. What are the IRRS of the two projects?
b. If your discount rate is 4.6%, 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 %. (Round to one decimal place.)
Data table
(Click on the following icon D in order to copy its contents into a spreadsheet.)
Project
Year 0
Year 1
$27
Year 2
Year 3
Year 4
lin
– $51
$22
$18
$12
$59
$99
$19
$41
$50
Im
ps
Print
Done
Transcribed Image Text:You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): E a. What are the IRRS of the two projects? b. If your discount rate is 4.6%, 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 %. (Round to one decimal place.) Data table (Click on the following icon D in order to copy its contents into a spreadsheet.) Project Year 0 Year 1 $27 Year 2 Year 3 Year 4 lin – $51 $22 $18 $12 $59 $99 $19 $41 $50 Im ps Print Done
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