Click on the following icon Project A B in order to copy its contents into a spreadsheet.) Year 1 Year 2 $26 $19 $20 $41 Year 0 - $51 - $100 Year 3 $19 $49 Year 4 $16 $62

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter10: Financial Statements And Reports
Section: Chapter Questions
Problem 3.3C
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You are choosing between two projects. The cash flows for the projects are given in the attached table​ ($miilion)
.
a. What are the IRRs of the two​ projects? (A &B)
b. If your discount rate is 4.9%​,what are theNPVs of the two​ projects? (A & B)
c. Why do IRR and NPV rank the two projects​ differently?
(Click on the following icon in order to copy its contents into a spreadsheet.)
Year 1
Year 2
Project
A
Year 0
- $51
$26
$19
B
- $100
$20
$41
Year 3
$19
$49
Year 4
$16
$62
Transcribed Image Text:(Click on the following icon in order to copy its contents into a spreadsheet.) Year 1 Year 2 Project A Year 0 - $51 $26 $19 B - $100 $20 $41 Year 3 $19 $49 Year 4 $16 $62
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