2. Suppose two projects-X and Y-both costing 500 each. Project A returns 1000 after one year and...

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2. Suppose two projects-X and Y-both costing 500 each. Project A returns 1000 after one year and 250 after two years. On the other hand, Project B returns 300 after one year and 1000 after two years. Calculate NPV of projects at discount rates of 5 per cent and 10 per cent. What happens to projects' (NPV-based) rankings at these discount rates? Why there is difference in ranking?

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