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Instructions: 1. Read and complete the attached assignment. 2. Submit the completed assignment using Word (.doc) or Excel (.xls) documents. Handwritten submittals will not be
Instructions: 1. Read and complete the attached assignment. 2. Submit the completed assignment using Word (.doc) or Excel (.xls) documents. Handwritten submittals will not be accepted. 3. Answer all questions and show calculations for the work. 4. 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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