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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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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