You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Ea. What are the IRRS of the two projects?b. If your discount rate is 4.8%, what are the NPVS of the two projects?c. Why do IRR and NPV rank the two projects differently?a. What are the IRRS of the two projects?The IRR for project A is %. (Round to one decimal place.)Data table(Click on the following icon in order to copy its contents into a spreadsheet.)ProjectABYear 0$48Year 1$26$99$18Year 2$19$38PrintDoneYear 3Year 4$19$17$48$59-X

a) For IRR calculations, we need to solve:0 = CF0 + CF1/(1+r) + CF2/(1+r)² + CF3/(1+r)³ +…

Answered: You are choosing between two projects.…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6PB: There are two projects under consideration by the Rainbow factory. Each of the projects will require...

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You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): a. What are the IRRs of the two projects? b. If your discount rate is 4.6%, what are the NPVs of the two projects? c. Why do IRR and NPV rank the two projects differently?
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K You are choosing between two projects. The cash flows for the projects are given in the following table ($ million): Project A B 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? a. What are the IRRS of the two projects? The IRR for project A is %. (Round to one decimal place.) Year 0 -$48 - $102 Year 1 Year 2 Year 3 Year 4 $23 $18 $22 $14 $19 $38 $51 $60
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You are choosing between two projects. The cash flows for the projects are given in the following table ( $ million ) : What are the IRRs of the two projects? If your discount rate is 5.4 % , what are the NPVs of the two projects? Why do IRR and NPV rank the two projects differently?
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Last one is $13 and $62 respectively
A project has the following cash flows set out below. What is the profitability index of this project if the relevant discount rate is 2 percent? Enter your final answer to two decimal places. Year Cash flow 0 -1,745 1 537 2 2,066 3 3,912

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