You are choosing between two projects. The cash flows for the project are given in the following table ($ million) :
Project Year 0 Year 1 Year 2 Year 3 Year 4
A) -$51 $25 $21 $21 $14
B) -$101 $18 $42 $48 $62
A. What are the IRRS of the two projects?
B. If your discount rate is 4.9%, what are the NPVs of the two projects?
C. Why do IRR and NPV rank the two projects differently?