Question: Instructions: Read and complete the attached assignment. Submit the completed assignment using Word (.doc) or Excel (.xls) documents. Answer all questions and show calculations for

Instructions:

Read and complete the attached assignment.
Submit the completed assignment using Word (.doc) or Excel (.xls) documents.
Answer all questions and show calculations for the work.
Check the Rubric

Situation: A firm has a capital budget of $100, which must be spent on one of two projects, each requiring a present outlay of $100. Project A yields a return of $120 after one year, whereas Project B yields $201.14 after 5 years.

Questions:

What is the NPV of each project using a discount rate of 10%?
What is the IRR of each project?
What are the project rankings based on these two investment decision rules?

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