Please provide solution and step by step instructions on how to solve the problems within the attached document.

Financial Concepts Exercise 10: Capital Budgeting Name: Group#: Instructions: leave all answers, whether in $, %, or years, to 2-decimal places. A project will cost $1.0 million. The company uses a 10% discount rate as a threshold for accepting capital projects. It is expected to have a 5 year life and returns (net of all costs and taxes) the following: 2015 Spring2 Q1 t: 0 CF0 Year0 ?? k = ??% 1 CF1 Year1 $100,000 2 CF2 Year2 $200,000 3 CF3 Year3 $300,000 4 CF4 Year4 $400,000 5 CF5 Year5 $500,000 2015 Spring2 a) Calculate the project's Net Present Value (NPV). NPV = NPV of all POSITIVE CFs: (1) take (1) divided by (2) to get PI; NPV of all NEGATIVE CFs: (2) ignore negative sign in (2); PI is always positive c) Calculate the Internal Rate of Return (IRR). IRR = PB = DPB = TV = BU MET AD-632OL