table with calculated ratios for each year.

Ratio	2021 (A)	2021 (B)	2022 (A)	2022 (B)	2023 (A)	2023 (B)
Current Ratio	2.0	1.67	1.86	1.60	1.75	1.55
Quick Ratio	1.67	1.39	1.54	1.33	1.44	1.27
Debt-to-Assets Ratio	0.5	0.5	0.5	0.51	0.49	0.49
Debt-to-Equity Ratio	1.0	1.0	1.0	1.03	0.96	0.97
Net Profit Margin	15%	11.43%	15.81%	12.5%	15.63%	13.51%
ROE	18%	13.33%	18.85%	14.52%	17.86%	14.71%

Company A and Company B both have declines in their liquidity ratios (current ratio and quick ratio) throughout 2021-2023, but Company A has a higher ratio which shows better financial health. Company A has higher profitability (Net Profit Margin and ROE) than Company B. Company A has a better leverage (Debt-to-Assets Ratio and Debt-to-Equity Ratio) over the period. Overall, Company A is better off financially.

2. NPV and IRR:

Calculate NPV and IRR using the provided cash flows for Company A.

Year	Cash Flow	Present Value Factor (10%)	Present Value
1	$30,000	0.909	27,270
2	$40,000	0.826	33,040
3	$50,000	0.751	37,550
Total PV	27,270 + 33,040	+ 37,550 = 97,860
NPV	97,860 - 100,000 = -2,140

Deliverable:

• Summarizing key findings about the companies' financial positions based on the ratios.
• Show the calculations for NPV and IRR clearly.
• explain whether the project is financially viable and why.

Step 4: Summary and Reflection

Tasks:

• Short conclusion summarizing the key takeaways from your analysis.
• Reflect on the importance of financial ratios and capital budgeting in making business decisions.

Deliverable:

• A short paragraph summarizing your findings and reflections.