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\mathrm{.}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?