6. You are choosing between two projects. The cash flows for the projects are given in the following Data table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A −$48 $27 $19 $22 $15 B −$100...

6. You are choosing between two projects. The cash flows for the projects are given in the following Data table ($ million):

Project	Year 0	Year 1	Year 2	Year 3	Year 4
A	−$48	$27	$19	$22	$15
B	−$100	$22	$39	$48	$62

The IRR for project A is __________________________%.

(Round to one decimal place.)

The IRR for project B is____________________________%.
(Round to one decimal place.)

If your discount rate is 5.4%, the NPV for project A

is $_______________million.
(Round to two decimal places.)

If your discount rate is 5.4%, the NPV for project B is

$______________ million.
(Round to two decimal places.)

NPV and IRR rank the two projects differently because they are measuring different things.

___________________is measuring value creation, while

___________________is measuring return on investment. Because returns do not scale with different levels of investment, the two measures may give different rankings when the initial investments are different.

Jun 06, 2022

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6. You are choosing between two projects. The cash flows for the projects are given in the following Data table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A −$48 $27 $19 $22 $15 B −$100...

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6. You are choosing between two projects. The cash flows for the projects are given in the following Data table​ ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A −$48 $27 $19 $22 $15 B −$100...

Get Answer To This Question

Related Questions & Answers

Submit New Assignment

6. You are choosing between two projects. The cash flows for the projects are given in the following Data table ($ million): Project Year 0 Year 1 Year 2 Year 3 Year 4 A −$48 $27 $19 $22 $15 B −$100...