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Please show work Situation: A firm has a capital budget of $100, which must be spent on one of two projects, each requiring a present

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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. Calculate: The NPV of each project using a discount rate of 10% The IRR of each project. Questions: 1. What are the project rankings based on these two investment decision rules? 2. Assume that the firm's reinvestment* rate is 12%, which project should the firm choose? *reinvestment means that for a particular project, the results from the project can be reinvested

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