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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
You are choosing between two projects, but can only take one. The cash flows for the projects are given in the following table:
Â
0 1 2 3 4Â AÂ - +50Â 25Â 20Â 20Â 15
BÂ - +100Â 20Â 40Â 50Â 60Â
Â
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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