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?